NRS 616B.027 Insurer
to provide office in State and statewide toll-free telephone service; private
carrier to provide adequate services and information to control losses and
prevent accidents and occupational diseases.

NRS 616B.028 Modified
program of industrial insurance for offenders in prison industry or work
program.

NRS 616B.029 Modified
program of industrial insurance for offenders engaged in work program directed
by Administrator of county or city jail or other local detention facility.

NRS 616B.031 Policy
of insurance: Coverage of all employees of employer; coverage of employees
under consolidated insurance program.

NRS 616B.032 Policy
of insurance: Coverage for domestic worker as part of homeowner’s policy of
insurance.

NRS 616B.033 Default
of employer does not relieve insurer from liability; effect of statements
contained in application for policy; notification of employer of cancellation
of policy; defense based on act or omission of insured employer may not be
raised by insurer against claimant; insurer placed in position of employer
under certain circumstances.

NRS 616B.036 Conditions
for providing industrial insurance for organization or association of
employers; approval of group or organization; adoption of regulations.

NRS 616B.038 Prohibition
against charging fee for inclusion on panel of providers of health care;
penalty.

NRS 616B.356 Certificate
of authority required before surety or bonding company may furnish bond or
other security for association.

NRS 616B.359 Certificate
of qualification as an association of self-insured employers: Time for
consideration of application; issuance by Commissioner; contents; effective
date; period certificate is in effect; cancellation by association.

NRS 616B.383 Advertisements
or written materials to join association of self-insured public or private
employers; solicitor to provide to Commissioner upon request copy of document
relating to solicitation.

NRS 616B.386 Membership
in association: Application; eligibility; authority of association to determine
eligibility; termination by member; cancellation by association; information to
be provided to Commissioner; provision of compensation after membership has
ceased.

NRS 616B.676 Written
application for issuance or renewal of certificate of registration must be on approved
form.

NRS 616B.679 Contents
of application; fee; Administrator to be notified of certain changes in
information about applicant; power of Administrator to revoke certificate of registration;
financial statements.

NRS 616B.682 Employee
leasing company to maintain office or similar site in State; maintenance,
inspection and copying of records.

NRS 616B.685 Separate
payroll records required upon operation of employee leasing company and
temporary employment service; prohibition on maintaining policy of workers’
compensation insurance for both employee leasing company and temporary
employment service.

NRS 616B.727 Administration
of claims: Duties of administrator of claims; duties of owner or principal contractor.

NRS 616B.730 Coverage
of employees who do not work at site of construction project; separate policy
required for certain employees who do not work at site of construction project;
reimbursement for cost of separate policy.

NRS 616B.850 Insurer
may establish plan to review small employers; objectives of plan.

_________

_________

GENERAL PROVISIONS

NRS 616B.003Periodic audit of insurers; required standard auditing
procedures; information to be shared by Division of Insurance; report to
Legislature.

1. The Administrator shall cause to be
conducted at least every 5 years an audit of all insurers who provide benefits
to injured employees pursuant to chapters 616A
to 616D, inclusive, or chapter 617 of NRS. The Administrator shall cause to be
conducted each year on a random basis additional partial audits of any insurer
who has a history of violations of the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, or the regulations adopted pursuant
thereto, as determined by the Administrator.

2. The Administrator shall require the use
of standard auditing procedures and shall establish a manual to describe the
standard auditing procedures. The manual must include:

(a) Specific audit objectives;

(b) Standards for documentation;

(c) Policies for supervisory review;

(d) Policies for the training of auditors;

(e) The format for the audit report; and

(f) Procedures for the presentation, distribution
and retention of the audit report.

3. The Commissioner and the Administrator
shall establish a procedure for sharing information between the Division of
Insurance of the Department of Business and Industry and the Division
concerning the qualifications of employers as self-insured employers pursuant
to NRS 616B.300 or as an association of
self-insured public or private employers pursuant to NRS
616B.353.

4. On or before March 1 of each year, the
Administrator shall make a report of each audit to the Legislature, if it is in
session, or to the Interim Finance Committee if the Legislature is not in
session.

NRS 616B.005Insurers to cooperate with Commissioner; duty of private
carriers to provide certain information to Commissioner.Each insurer shall cooperate with the
Commissioner in the performance of his or her duties pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS. Each private carrier shall provide
the Commissioner with any information, statistics or data in its records which
pertain to any employer who is making an application to become self-insured or
who is self-insured, or who is becoming or who is a member of an association of
self-insured public or private employers.

NRS 616B.006Insurer required to provide information necessary for
enforcement of statutes, regulations or standards; Administrator required to
make written request for information.

1. An insurer shall provide to the
Administrator upon written request only information in its possession which is
necessary for the enforcement of any provision of this chapter or chapter 616A, 616C,
616D or 617
of NRS, or any regulation or standard adopted pursuant thereto, within 30 days
after the date of the request. The written request must specifically indicate:

(a) What information is being requested; and

(b) The statute, regulation or standard adopted
pursuant thereto for which the information is needed.

2. Upon the receipt of a written request
from an insurer, the Administrator may extend the time within which information
must be provided if good cause for granting the extension is shown.

(Added to NRS by 1991, 2394)—(Substituted
in revision for NRS 616.191)

NRS 616B.009Reports required to be made by insurers.

1. All insurers shall report to the
Administrator, annually or at intervals which the Administrator requires, all
accidental injuries, occupational diseases, dispositions of claims and payments
made pursuant to chapters 616A to 617, inclusive, of NRS or regulations adopted by
the Division pursuant thereto.

2. Each self-insured employer and
association of self-insured public or private employers shall report its
reserves to the Administrator in the manner prescribed in subsection 1.

NRS 616B.012Confidentiality and disclosure of information; penalty for
disclosure or use of information; privileged communications.

1. Except as otherwise provided in this
section and NRS 239.0115, 616B.015, 616B.021 and 616C.205, information obtained from any
insurer, employer or employee is confidential and may not be disclosed or be
open to public inspection in any manner which would reveal the person’s
identity.

2. Any claimant or legal representative of
the claimant is entitled to information from the records of the insurer, to the
extent necessary for the proper presentation of a claim in any proceeding under
chapters 616A to 616D, inclusive, or chapter 617 of NRS.

3. The Division and Administrator are
entitled to information from the records of the insurer which is necessary for
the performance of their duties. The Administrator may, by regulation,
prescribe the manner in which otherwise confidential information may be made
available to:

(a) Any agency of this or any other state charged
with the administration or enforcement of laws relating to industrial
insurance, unemployment compensation, public assistance or labor law and
industrial relations;

(b) Any state or local agency for the enforcement
of child support;

(c) The Internal Revenue Service of the
Department of the Treasury;

(d) The Department of Taxation; and

(e) The State Contractors’ Board in the
performance of its duties to enforce the provisions of chapter 624 of NRS.

Ê Information
obtained in connection with the administration of a program of industrial
insurance may be made available to persons or agencies for purposes appropriate
to the operation of a program of industrial insurance.

4. Upon written request made by a public
officer of a local government, an insurer shall furnish from its records the
name, address and place of employment of any person listed in its records. The
request must set forth the social security number of the person about whom the request
is made and contain a statement signed by proper authority of the local
government certifying that the request is made to allow the proper authority to
enforce a law to recover a debt or obligation owed to the local government.
Except as otherwise provided in NRS
239.0115, the information obtained by the local government is confidential
and may not be used or disclosed for any purpose other than the collection of a
debt or obligation owed to the local government. The insurer may charge a
reasonable fee for the cost of providing the requested information.

5. To further a current criminal
investigation, the chief executive officer of any law enforcement agency of
this State may submit to the Administrator a written request for the name,
address and place of employment of any person listed in the records of an
insurer. The request must set forth the social security number of the person
about whom the request is made and contain a statement signed by the chief
executive officer certifying that the request is made to further a criminal
investigation currently being conducted by the agency. Upon receipt of a
request, the Administrator shall instruct the insurer to furnish the
information requested. Upon receipt of such an instruction, the insurer shall
furnish the information requested. The insurer may charge a reasonable fee to
cover any related administrative expenses.

6. Upon request by the Department of
Taxation, the Administrator shall provide:

(a) Lists containing the names and addresses of
employers; and

(b) Other information concerning employers
collected and maintained by the Administrator or the Division to carry out the
purposes of chapters 616A to 616D, inclusive, or chapter 617 of NRS,

Ê to the
Department for its use in verifying returns for the taxes imposed pursuant to chapters 363A and 363B of NRS. The Administrator may charge a
reasonable fee to cover any related administrative expenses.

7. Any person who, in violation of this
section, discloses information obtained from files of claimants or policyholders
or obtains a list of claimants or policyholders under chapters 616A to 616D, inclusive, or chapter 617 of NRS and uses or permits the use of the
list for any political purposes, is guilty of a gross misdemeanor.

8. All letters, reports or communications
of any kind, oral or written, from the insurer, or any of its agents,
representatives or employees are privileged and must not be the subject matter
or basis for any lawsuit if the letter, report or communication is written,
sent, delivered or prepared pursuant to the requirements of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

9. The provisions of this section do not
prohibit the Administrator or the Division from disclosing any nonproprietary
information relating to an uninsured employer or proof of industrial insurance.

NRS 616B.015Confidentiality of certain records and files of Division of
Insurance concerning self-insured employers and associations of self-insured
public or private employers; exceptions.

1. Except as otherwise provided in
subsection 2 and NRS 239.0115, the
records and files of the Division concerning self-insured employers and
associations of self-insured public or private employers are confidential and
may be revealed in whole or in part only in the course of the administration of
the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS relating to those employers or upon
the lawful order of a court of competent jurisdiction.

2. The records and files specified in
subsection 1 are not confidential in the following cases:

(a) Testimony by an officer or agent of the
Division and the production of records and files on behalf of the Division in
any action or proceeding conducted pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS if that testimony or the records and
files, or the facts shown thereby, are involved in the action or proceeding.

(b) Delivery to a self-insured employer or an
association of self-insured public or private employers of a copy of any
document filed by the employer with the Division pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

(c) Publication of statistics if classified so as
to prevent:

(1) Identification of a particular
employer or document; or

(2) Disclosure of the financial or
business condition of a particular employer or insurer.

(d) Disclosure in confidence, without further
distribution or disclosure to any other person, to:

(1) The Governor or an agent of the
Governor in the exercise of the Governor’s general supervisory powers;

(2) Any person authorized to audit the
accounts of the Division in pursuance of an audit;

(3) The Attorney General or other legal
representative of the State in connection with an action or proceeding
conducted pursuant to the provisions of chapters
616A to 616D, inclusive, or chapter 617 of NRS;

(4) Any agency of this or any other state
charged with the administration or enforcement of the laws relating to workers’
compensation or unemployment compensation; or

(5) Any federal, state or local law
enforcement agency.

(e) Disclosure in confidence by a person who
receives information pursuant to paragraph (d) to a person in furtherance of
the administration or enforcement of the laws relating to workers’ compensation
or unemployment compensation.

3. As used in this section:

(a) “Division” means the Division of Insurance of
the Department of Business and Industry.

(b) “Records and files” means:

(1) All credit reports, references,
investigative records, financial information and data pertaining to the net
worth of a self-insured employer or association of self-insured public or
private employers; and

(2) All information and data required by
the Division to be furnished to it pursuant to chapters
616A to 616D, inclusive, or chapter 617 of NRS or which may be otherwise obtained
relative to the finances, earnings, revenue, trade secrets or the financial
condition of any self-insured employer or association of self-insured public or
private employers.

1. The Administrator shall establish a
method of indexing claims for compensation that will make information concerning
the claimants of an insurer available to other insurers and the Fraud Control
Unit for Industrial Insurance established pursuant to NRS 228.420.

2. Every insurer shall provide the following
information if required by the Administrator for establishing and maintaining
the index of claims:

(a) The first name, last name, middle initial, if
any, date of birth and social security number of the injured employee;

(b) The name and tax identification number of the
employer of the injured employee;

(c) If the employer of the injured employee is a
member of an association of self-insured public or private employers, the name
and tax identification number of that association;

(d) The name and tax identification number of the
insurer, unless the employer of the injured employee is self-insured and this
requirement would duplicate the information required pursuant to paragraph (b);

(e) The date upon which the employer’s policy of
industrial insurance that covers the claim became effective and the date upon
which it will expire or must be renewed;

(f) The number assigned to the claim by the
insurer;

(g) The date of the injury or of the sustaining
of the occupational disease;

(h) The part of the body that was injured or the
occupational disease that was sustained by the injured employee;

(i) The percentage of disability as determined by
the rating physician or chiropractor;

(j) Which part of the body was permanently
impaired, if any;

(k) What type of accident or occupational disease
that is the subject of the claim;

(l) The date, if any, that the claim was closed;
and

(m) If the claim has been closed, whether the
closure was pursuant to the provisions of:

(a) In a format that is consistent with
nationally recognized standards for the reporting of data regarding industrial
insurance; and

(b) Electronically or in another medium approved
by the Administrator.

4. The Administrator shall ensure that the
requirement for an insurer to provide information pursuant to subsection 2 is
administered in a fair and equal manner so that an insurer is not required to
provide more or a different type of information than another insurer similarly
situated.

5. The provisions of this section do not
prevent the Administrator from:

(a) Conducting audits pursuant to the provisions
of NRS 616B.003 and collecting information from
such audits;

(b) Receiving and collecting information from the
reports that insurers must submit to the Administrator pursuant to the
provisions of NRS 616B.009;

(c) Investigating alleged violations of the
provisions of chapters 616A to 617, inclusive, of NRS; or

6. If an employee files a claim with an
insurer, the insurer is entitled to receive from the Administrator a list of
the prior claims of the employee. If the insurer desires to inspect the files
related to the prior claims, the insurer must obtain the written consent of the
employee.

7. Any information obtained from the index
of claims may be admitted into evidence in any hearing before an appeals
officer, a hearing officer or the Administrator.

8. The Division may assess and collect a
reasonable fee for its services provided pursuant to this section. The fee must
be payable monthly or at such other intervals as determined by the
Administrator.

9. If the Administrator determines that an
insurer has intentionally failed to provide the information required by
subsection 2, the Administrator shall impose an administrative fine of $1,000
for the initial violation, and a fine of $2,000 for a second or subsequent
violation.

10. As used in this section, “tax
identification number” means the number assigned by the Internal Revenue
Service of the United States Department of the Treasury for identification.

1. An insurer shall provide access to the
files of claims in its offices.

2. The physical records in a file
concerning a claim filed in this State may be kept at an office located outside
this State if all records in the file are accessible at offices located in this
State on computer in a microphotographic, electronic or other similar format
that produces an accurate reproduction of the original. If a claim filed in this
State is open, the records in the file must be reproduced and available for
inspection during regular business hours within 24 hours after requested by the
employee or the employee’s designated agent, the employer or the employer’s
designated agent, or the Administrator or the Administrator’s designated agent.
If a claim filed in this State is closed, the records in the file must be
reproduced and available for inspection during regular business hours within 14
days after requested by such persons.

3. Upon request, the insurer shall make
copies or other reproductions of anything in the file and may charge a
reasonable fee for this service. Copies or other reproductions of materials in
the file which are requested by the Administrator or the Administrator’s
designated agent, or the Nevada Attorney for Injured Workers or his or her
designated agent must be provided free of charge.

4. The Administrator may adopt regulations
concerning the:

(a) Maintenance of records in a file on claims
that are open or closed; and

(b) Preservation, examination and use of records
which have been stored on computer or in a microphotographic, electronic or
similar format by an insurer.

5. This section does not require an
insurer to allow inspection or reproduction of material regarding which a legal
privilege against disclosure has been conferred.

1. Upon written approval of the
Administrator, the insurer may destroy accumulated and noncurrent detail
records such as payroll reports, checks, claims, and other records of similar
importance for the period July 1, 1913, to January 1, 1947, if:

(a) Claims from January 1, 1940, and after are
first microphotographed; and

(b) A brief inventory of the destroyed records is
retained.

2. The insurer may dispose of or destroy
any record which has been microphotographed or filmed if the procedure required
by NRS 239.051 has been followed.

3. The principal records, such as the
general and regular journals and the general ledgers, must be retained intact
until audited and then must be microfilmed for retention until their
destruction pursuant to NRS 239.051.

NRS 616B.027Insurer to provide office in State and statewide toll-free
telephone service; private carrier to provide adequate services and information
to control losses and prevent accidents and occupational diseases.

1. Every insurer shall:

(a) Provide an office in this State operated by
the insurer or its third-party administrator in which:

(1) A complete file of each claim is
accessible, in accordance with the provisions of NRS
616B.021;

(2) Persons authorized to act for the
insurer and, if necessary, licensed pursuant to chapter
683A of NRS, may receive information related to a claim and provide the
services to an employer and his or her employees required by chapters 616A to 617,
inclusive, of NRS; and

(3) An employee or his or her employer,
upon request, is provided with information related to a claim filed by the
employee or a copy or other reproduction of the information from the file for
that claim, in accordance with the provisions of NRS
616B.021.

NRS 616B.028Modified program of industrial insurance for offenders in prison
industry or work program.

1. Any offender confined at the state
prison, while engaged in work in a prison industry or work program, whether the
program is operated by an institution of the Department of Corrections, by
contract with a public entity or by a private employer, is entitled to coverage
under the modified program of industrial insurance established by regulations
adopted by the Division if the Director of the Department of Corrections
complies with the provisions of the regulations, and coverage is approved by a
private carrier.

2. An offender is limited to the rights
and remedies established by the provisions of the modified program of
industrial insurance established by regulations adopted by the Division. The
offender is not entitled to any rights and remedies established by the
provisions of chapters 616A to 617, inclusive, of NRS.

3. The Division shall, in cooperation with
the Department of Corrections and the Risk Management Division of the
Department of Administration, adopt regulations setting forth a modified
program of industrial insurance to provide offenders with industrial insurance
against personal injuries arising out of and in the course of their work in a
prison industry or work program.

NRS 616B.029Modified program of industrial insurance for offenders engaged
in work program directed by Administrator of county or city jail or other local
detention facility.

1. Any offender confined in a county jail,
city jail or other local detention facility, while engaged in work in a work
program directed by the Administrator of the jail or other detention facility,
whether the work program is operated by contract with a public entity or by a
private employer, may receive coverage under the modified program of industrial
insurance established by regulations adopted by the Division if the
Administrator of the jail or other detention facility complies with the
provisions of the regulations and coverage is approved by a private carrier.

2. An offender is limited to the rights
and remedies established by the provisions of the modified program of
industrial insurance established by regulations adopted by the Division. The
offender is not entitled to any rights and remedies established by the
provisions of chapters 616A to 617, inclusive, of NRS.

3. The Division, in cooperation with the
various administrators of jails and other detention facilities, shall adopt
regulations setting forth a modified program of industrial insurance to provide
offenders with industrial insurance against personal injuries arising out of
and in the course of their work in a work program.

4. As used in this section, “administrator
of the jail or other detention facility” means the sheriff of a county jail,
chief of police of a city jail or director of a local detention facility.

NRS 616B.031Policy of insurance: Coverage of all employees of employer;
coverage of employees under consolidated insurance program.

1. Except as otherwise provided in
subsection 2, an insurer shall not issue a policy of industrial insurance to an
employer that does not cover each employee of that employer who satisfies the
definition of employee set forth in NRS
616A.105 to 616A.225, inclusive.

2. If the employer is a contractor or
subcontractor who is engaged in the construction of a project that is covered
by a consolidated insurance program established pursuant to NRS 616B.710 to 616B.737,
inclusive, an insurer may issue a policy of industrial insurance to that
employer which does not cover an employee who:

(a) Is assigned to participate in the
construction of the project that is covered by the consolidated insurance
program; and

(b) Works exclusively at the site of the
construction project that is covered by the consolidated insurance program.

NRS 616B.032Policy of insurance: Coverage for domestic worker as part of
homeowner’s policy of insurance.

1. A private carrier may provide
industrial insurance, as a part of a homeowner’s policy of insurance, to a
person who employs a domestic worker for the term of that worker’s employment.
Upon providing such coverage, the private carrier may, with the approval of the
Commissioner, determine and fix the premium rates to be paid for the industrial
insurance so provided.

(a) Shall be deemed to be an employee while
performing work for his or her employer at a wage:

(1) Equal to his or her average monthly
wage as determined pursuant to the regulations adopted by the Administrator
pursuant to NRS 616C.420 if the
domestic worker is employed more than 20 hours per week; or

(2) Of $150 per month if the domestic
worker is employed not more than 20 hours per week; and

(a) “Domestic worker” is a person who is engaged
exclusively in household or domestic service performed inside or outside of a
person’s residence. The term includes, without limitation, a cook, housekeeper,
maid, companion, babysitter, chauffeur or gardener.

(b) “Homeowner’s policy of insurance” means a
policy of property or casualty insurance that provides coverage for the loss of
or damage to a home or against liability for the death or injury of a person or
damage to property.

NRS 616B.033Default of employer does not relieve insurer from liability;
effect of statements contained in application for policy; notification of
employer of cancellation of policy; defense based on act or omission of insured
employer may not be raised by insurer against claimant; insurer placed in
position of employer under certain circumstances.

1. Every policy of insurance issued
pursuant to chapters 616A to 617, inclusive, of NRS must contain a provision
for the requirements of subsection 5 and a provision that insolvency or
bankruptcy of the employer or the employer’s estate, or discharge therein, or
any default of the employer does not relieve the insurer from liability for
compensation resulting from an injury otherwise covered under the policy issued
by the insurer.

2. No statement in an employer’s
application for a policy of industrial insurance voids the policy as between
the insurer and employer unless the statement is false and would have
materially affected the acceptance of the risk if known by the insurer, but in
no case does the invalidation of a policy as between the insurer and employer
affect the insurer’s obligation to provide compensation to claimants arising
before the cancellation of the policy. If the insurer is required pursuant to
this subsection to provide compensation under an invalid policy, the insurer is
subrogated to the claimant’s rights against the employer.

3. If an insurer intends to cancel a
policy of insurance issued by the insurer pursuant to chapters 616A to 617,
inclusive, of NRS, the insurer must give notice to that effect in writing to
the employer fixing the date on which it is proposed that the cancellation
becomes effective, which must be at least 30 days after the date on which the
notice is personally delivered or mailed to the employer, except in the case of
cancellation for failure to pay a premium when due. The notices must comply
with the provisions of NRS 687B.310
to 687B.355, inclusive, and must be
served personally on or sent by first-class mail or electronic transmission to
the employer. If the employer has secured insurance with another insurer which
would cause double coverage, the cancellation must be made effective as of the
effective date of the other insurance.

4. As between any claimant and the
insurer, no defense based on any act or omission of the insured employer, if
different from the insurer, may be raised by the insurer.

5. For the purposes of chapters 616A to 617,
inclusive, of NRS, as between the employee and the insurer:

(a) Except as otherwise provided in NRS 616C.065, notice or knowledge of the
injury to or by the employer is notice or knowledge to or by the insurer;

(b) Jurisdiction over the employer is
jurisdiction over the insurer; and

(c) The insurer is bound by and subject to any
judgments, findings of fact, conclusions of law, awards, decrees, orders or
decisions rendered against the employer in the same manner and to the same
extent as the employer.

NRS 616B.036Conditions for providing industrial insurance for organization
or association of employers; approval of group or organization; adoption of
regulations.

1. A private carrier may provide
industrial insurance for an organization or association of employers as a group
if:

(a) The members of the organization or
association are engaged in a common trade or business; and

(b) The formation and operation of a program of
industrial insurance for the organization or association will substantially
assist in the handling of claims and the prevention of accidents for the
employers as a group.

2. Notwithstanding the provisions of
subsection 1, a private carrier may provide industrial insurance for an
organization or association of employers as a group whose members are not
engaged in a common trade or business if:

(a) The organization or association of employers
is formed and maintained for purposes other than obtaining industrial
insurance; and

(b) The contract or other agreement pursuant to
which the private carrier will provide industrial insurance for the
organization or association provides that:

(1) A separate policy will be issued to
each member of the organization or association; and

(2) Other than the payment of premiums by
the organization or association, the organization or association and each of
its members are not liable for the cost of the administration of claims or the
compensation payable pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

3. The Commissioner must approve each
organization or association before a policy of industrial insurance may be
issued to it as a group pursuant to subsection 1 or 2.

4. The Commissioner shall adopt
regulations for the qualification of organizations or associations of employers
described in subsections 1 and 2.

NRS 616B.038Prohibition against charging fee for inclusion on panel of
providers of health care; penalty.

1. If an insurer establishes a panel of
providers of health care for the purpose of offering health care services
pursuant to chapters 616A to 617, inclusive, of NRS, the insurer shall not
charge a provider of health care:

(a) A fee to include the name of the provider on
the panel of providers of health care; or

(b) Any other fee related to establishing a
provider of health care as a provider for the insurer.

2. If an insurer violates the provisions
of subsection 1, the insurer shall pay to the provider of health care an amount
that is equal to twice the fee charged to the provider of health care.

3. A court shall award costs and
reasonable attorney’s fees to the prevailing party in an action brought
pursuant to this section.

1. There is hereby established in the
State Treasury the State Insurance Fund. The Commissioner shall administer the
Fund.

2. The money in the Fund may be invested
by the State Treasurer in accordance with the provisions of NRS 355.140, 355.150 and 355.160.

3. Any money delivered to the Commissioner
pursuant to NRS 616B.042 and 696B.360 must be deposited in the Fund
and be held in trust by the Commissioner as custodian thereof for the purpose
of providing compensation for industrial accidents and occupational diseases
and for administrative expenses incidental thereto.

(Added to NRS by 1999, 1763)—(Substituted
in revision for NRS 616B.0862)

NRS 616B.042Money to provide compensation held in trust; conditions when
trust money to be deposited in Fund.

1. The chief executive officer of any
successor organization to the State Industrial Insurance System shall continue
to hold in trust any money paid to the System for the purpose of providing
compensation for industrial accidents and occupational diseases and
administrative expenses incidental thereto. The successor organization shall
use that money only for the purpose for which it was paid.

2. If any successor organization to the
State Industrial Insurance System ceases to provide industrial insurance in
this State, all money held in trust pursuant to subsection 1 must be delivered
to the Commissioner on a date that ensures that all benefits will be paid to
qualified claimants under policies of industrial insurance previously issued by
the State Industrial Insurance System or the successor organization. The
Commissioner shall deposit the money delivered to the Commissioner pursuant to
this subsection in the State Insurance Fund.

(Added to NRS by 1999, 1762)—(Substituted
in revision for NRS 616B.0865)

NRS 616B.044Authority of successor organization to take credit for
reinsurance.

1. Any successor organization to the State
Industrial Insurance System may take as credit as an asset or as a deduction
from liability on account of reinsurance for reinsurance ceded to an assuming
alien insurer with security based on discounted reserves for losses that were
maintained by the System for accounting periods beginning before July 1, 1995,
at a rate not to exceed 6 percent.

2. As used in this section, “alien
insurer” has the meaning ascribed to it in NRS
679A.090.

(Added to NRS by 1999, 1763)—(Substituted
in revision for NRS 616B.0867)

NRS 616B.046Disposition of money in Fund on repeal of statutes relating to
workers’ compensation.If chapters 616A to 616D, inclusive, of NRS shall hereafter be
repealed, all moneys which are in the State Insurance Fund at the time of the
repeal shall be subject to such disposition as may be provided by the
Legislature, and in default of such legislative provisions distribution thereof
shall be in accordance with the justice of the matter, due regard being had to
obligations of compensation incurred and existing.

NRS 616B.215Appeal by principal contractor from denial of final certificate
of coverage for project; appeal by employer from determination regarding
vocational rehabilitation of injured employee.

1. Except as otherwise provided in
subsection 2:

(a) A principal contractor or an owner of
property acting as a principal contractor aggrieved by a letter issued pursuant
to NRS 616B.645; or

(b) An employer aggrieved by a determination made
pursuant to NRS 616C.585,

Ê may appeal
from the letter or determination by filing a notice of appeal with the
Administrator within 30 days after the date of the letter or determination.

2. An employer shall not seek to remove
costs that have been charged to the account of the employer by appealing to the
Administrator any issue that relates to a claim for compensation if the issue
was raised or could have been raised before a hearing officer or an appeals
officer pursuant to NRS 616C.315 or 616C.345.

3. The decision of the Administrator is
the final and binding administrative determination of an appeal filed pursuant
to this section, and the whole record consists of all evidence taken at the
hearing before the Administrator and any findings based thereon.

NRS 616B.222Determination of total amount paid to employees for services
performed during policy year.To
determine the total amount paid to employees for services performed, the
maximum amount paid to any one employee during a policy year shall be deemed to
be $36,000.

NRS 616B.224Periodic report of payroll and reported tips; periodic payment
of premiums; effect of failure to submit information or premiums; collection of
premiums by insurer.

1. Every private or public employer who is
not a self-insured employer or a member of an association of self-insured
public or private employers shall, at intervals and on or before dates
established by the employer’s insurer, furnish the insurer with:

(a) A true and accurate payroll showing:

(1) The total amount paid to employees for
services performed;

(2) The amount of tips reported to the
employer by every employee pursuant to 26 U.S.C. § 6053(a) whose tips in cash
totaled $20 or more; and

(3) A segregation of employment in
accordance with the requirements of the Commissioner; and

(b) Any premium due pursuant to the terms of the
policy of industrial insurance.

Ê The payroll
reports and any premium may be furnished to the insurer on different dates, as
established by the insurer.

2. The failure of any employer to comply
with the provisions of this section operates as a rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS. The insurer shall, within the period
specified in subsection 2 of NRS 616B.461, notify
the Administrator of each such rejection by notifying the Administrator of its
cancellation or decision not to renew the policy of that employer.

3. The insurer shall notify any employer
or the representative of the employer by first-class mail of any failure on his
or her part to comply with the provisions of this section. The notice or its
omission does not modify or waive the requirements or effective rejection of chapters 616A to 616D, inclusive, and chapter 617 of NRS as otherwise provided in those
chapters.

4. To the extent permitted by federal law,
the insurer shall vigorously pursue the collection of premiums that are due
under the provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an employer’s debts have been
discharged in a bankruptcy proceeding.

NRS 616B.227Submission and retention of reports concerning tips received by employees;
payment of premiums for tips; calculation of compensation; notification of
employees to report tips.

1. Except as otherwise provided in
subsection 2, an employer shall:

(a) Make a copy of each report that an employee
files with the employer pursuant to 26 U.S.C. § 6053(a) to report the amount of
his or her tips to the United States Internal Revenue Service; and

(b) Submit the copy to his or her private carrier
upon request and retain another copy for his or her records or, if the employer
is self-insured or a member of an association of self-insured public or private
employers, retain the copy for his or her records.

2. An employer who maintains his or her
records concerning payroll by a computerized program or process that can
produce a report on all employees which indicates:

(a) The amount of tips reported by each employee
pursuant to 26 U.S.C. § 6053(a); or

(b) The amount of tips allocated to each employee
pursuant to a formula applied by the employer, whether by agreement of the
employees or by imposition of the employer,

Ê may satisfy
the requirements of subsection 1 by submitting a copy of the report to his or
her private carrier and maintaining another copy of the report for his or her
records.

3. An employer who is not self-insured or
a member of an association of self-insured public or private employers shall
pay the private carrier the premiums for the reported tips at the same rate as
he or she pays on regular wages.

4. The private carrier, self-insured
employer or association of self-insured public or private employers shall
calculate compensation for an employee on the basis of wages paid by the
employer plus the amount of tips reported by the employee pursuant to 26 U.S.C.
§ 6053(a). Reports made after the date of injury may not be used for the
calculation of compensation.

5. An employer shall notify his or her
employees of the requirement to report income from tips to calculate his or her
federal income tax and to include the income in the computation of benefits
pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS.

6. The Administrator shall adopt such
regulations as are necessary to carry out the provisions of this section.

NRS 616B.228Budgeting for premiums and payment of premiums by public
employers.Every state office,
department, board, commission, bureau, agency or institution, operating by
authority of law, and each county, city, school district and other political
subdivision of this State shall budget for industrial insurance in the same
manner as for other expenses and, if insured by a private carrier, shall pay
premiums as required by its contract.

1. An employer may qualify and remain
qualified as a self-insured employer by establishing to the satisfaction of the
Commissioner that the employer has sufficient administrative and financial
resources to make certain the prompt payment of all compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS. For the purposes of this subsection,
an employer has sufficient financial resources if:

(a) At the time of initial qualification and
until the employer has operated successfully as a qualified self-insured
employer for 3 years, as determined by the Commissioner, the employer has a
tangible net worth of not less than $2,500,000, as evidenced by a statement of
tangible net worth provided to the Division of Insurance of the Department of
Business and Industry by an independent certified public accountant; or

(b) After 3 years of successful operation as a
qualified self-insured employer, as determined by the Commissioner, the
employer has net cash flows from operating activities plus net cash flows from
financing activities of five times the average of claims paid for each of the
last 3 years or $7,500,000, whichever is less.

2. A self-insured employer must, in
addition to establishing financial ability to pay, deposit with the
Commissioner a bond executed by the employer as principal, and by a corporation
qualified under the laws of this State as surety, payable to the State of
Nevada, and conditioned upon the payment of compensation for injuries and
occupational diseases to employees. The bond must be in an amount reasonably
sufficient to ensure payment of compensation, but in no event may it be less
than 105 percent of the employer’s expected annual incurred cost of claims, or
less than $100,000. In arriving at an amount for the expected annual cost of
claims, due consideration must be given to the past and prospective experience
of the employer with losses and expenses within this State, to the hazard of
catastrophic loss, to other contingencies, and to trends within the State. In
arriving at the amount of the deposit required, the Commissioner may consider
the nature of the employer’s business, the financial ability of the employer to
pay compensation and the employer’s probable continuity of operation.

3. In lieu of a bond, the employer may
deposit with the Commissioner a like amount of lawful money of the United
States or any other form of security authorized by NRS 100.065. If security is provided in
the form of a savings certificate, certificate of deposit or investment
certificate, the certificate must state that the amount is unavailable for
withdrawal except upon order of the Commissioner.

4. The required deposit may be increased
or decreased by the Commissioner in accordance with chapter 681B of NRS and the Commissioner’s
regulations for loss reserves in casualty insurance. If the Commissioner
requires an employer to increase his or her deposit, the Commissioner may
specify the form of the additional security. The employer shall comply with
such a requirement within 60 days after receiving notice from the Commissioner.

5. The Commissioner shall require the
self-insured employer to submit evidence of excess insurance to provide
protection against a catastrophic loss. The excess insurance must be written by
an insurer authorized to do business in this State. The Commissioner shall consider
the excess insurance coverage as a basis for a reduction in the deposit
required of an employer.

6. The Account for Self-Insured Employers
is hereby created in the State Agency Fund for Bonds. All money received by the
Commissioner pursuant to this section must be deposited with the State
Treasurer to the credit of the Account for Self-Insured Employers. All claims
against this Account must be paid as other claims against the State are paid.

1. If a self-insured employer becomes
insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is
named in any involuntary proceeding thereunder, makes a general or special
assignment for the benefit of creditors or fails to pay compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for payment of any
claim becomes final, the Commissioner may, after giving at least 10 days’
notice to the employer and any insurer or guarantor, use money or interest on
securities, sell securities or institute legal proceedings on surety bonds
deposited or filed with the Commissioner to the extent necessary to make those
payments. Until the Commissioner gives a 10-day notice pursuant to this
subsection, the employer is entitled to all interest and dividends on bonds or
securities on deposit and to exercise all voting rights, stock options and
other similar incidents of ownership thereof.

2. A company providing a surety bond under
NRS 616B.300 may terminate liability on its surety
bond by giving the Commissioner and the employer 90 days’ written notice. The
termination does not limit liability which was incurred under the surety bond
before the termination. If the employer fails to requalify as a self-insured
employer on or before the termination date, the employer’s certification is
withdrawn when the termination becomes effective.

1. The Commissioner may assess all
self-insured employers to provide for claims against any insolvent self-insured
employer.

2. All money received from such
assessments must be deposited with the State Treasurer to the credit of the
Account for Insolvent Self-Insured Employers, which is hereby created in the
Fund for Workers’ Compensation and Safety. Money in the Account must be used
solely to carry out the provisions of this section. All claims against the
Account must be paid as other claims against the State are paid. The State
Treasurer shall invest money in the account in the same manner and in the same
securities in which the State Treasurer may invest money of the State General
Fund. Income realized from the investment of the assets in the Account must be
credited to the Account.

NRS 616B.312Certificate of qualification as self-insured employer: Issuance
by Commissioner; contents; effective date; period certificate is in effect.

1. Upon determining that an employer is
qualified as a self-insured employer, the Commissioner shall issue a
certificate to that effect to the employer and the Administrator. No
certificate may be issued to any employer who, within the 2 years immediately
preceding the employer’s application, has had his or her certification as a
self-insured employer involuntarily withdrawn by the Commissioner.

2. A certificate issued pursuant to this
section must include, without limitation:

(a) The name of the self-insured employer;

(b) An identification number assigned to the
self-insured employer by the Commissioner; and

(c) The date on which the certificate was issued.

3. Except as otherwise provided in NRS 616B.315 and 616B.318,
certificates issued pursuant to this section remain in effect until withdrawn
by the Commissioner or cancelled by the employer. Coverage for employers
qualifying under NRS 616B.615 becomes effective on
the date of certification or the date specified in the certificate.

NRS 616B.315Notification of change in ownership or control of self-insured
employer; automatic termination of certification unless extension granted.A self-insured employer shall notify the
Commissioner not less than 60 days before any change in ownership or control of
the employer. The certification of the self-insured employer terminates
automatically on the date of the change unless the Commissioner extends the
certification. Except as otherwise provided in NRS
616B.015, the Commissioner, upon request, may declare as confidential any
documents which are submitted in support of a request for such an extension.
Documents declared confidential pursuant to this section are subject to the
provisions of NRS 239.0115.

1. The Commissioner shall impose an
administrative fine, not to exceed $1,000 for each violation, and:

(a) Shall withdraw the certification of a
self-insured employer if:

(1) The deposit required pursuant to NRS 616B.300 is not sufficient and the employer fails
to increase the deposit after the employer has been ordered to do so by the
Commissioner;

(2) The self-insured employer fails to
provide evidence of excess insurance pursuant to NRS
616B.300 within 45 days after the employer has been so ordered; or

(3) Except as otherwise provided in
subsection 4, the employer becomes insolvent, institutes any voluntary
proceeding under the Bankruptcy Act or is named in any involuntary proceeding
thereunder.

(b) May withdraw the certification of a
self-insured employer if:

(1) The employer intentionally fails to
comply with regulations of the Commissioner regarding reports or other
requirements necessary to carry out the purposes of chapters 616A to 616D, inclusive, and chapter 617 of NRS;

(2) The employer violates the provisions
of subsection 2 of NRS 616B.500 or any regulation
adopted by the Commissioner or the Administrator concerning the administration
of the employer’s plan of self-insurance; or

(3) The employer makes a general or
special assignment for the benefit of creditors or fails to pay compensation
after an order for payment of any claim becomes final.

2. Any employer whose certification as a
self-insured employer is withdrawn must, on the effective date of the
withdrawal, qualify as an employer pursuant to NRS
616B.650.

3. The Commissioner may, upon the written
request of an employer whose certification as a self-insured employer is
withdrawn pursuant to subparagraph (3) of paragraph (a) of subsection 1,
reinstate the employer’s certificate for a reasonable period to allow the
employer sufficient time to provide industrial insurance for his or her
employees.

4. The Commissioner may authorize an
employer to retain his or her certification as a self-insured employer during
the pendency of a proceeding specified in subparagraph (3) of paragraph (a) of
subsection 1 if the employer establishes to the satisfaction of the
Commissioner that the employer is able to pay all claims for compensation
during the pendency of the proceeding.

NRS 616B.321Imposition of fine if self-insured employer fails to pay
compensation as ordered.The
Commissioner shall impose an administrative fine, not to exceed $5,000, if an
employer whose certification as a self-insured employer has terminated fails to
pay compensation pursuant chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for payment of any
claim becomes final.

NRS 616B.324Self-insured employer liable for violation by employer’s agent.A person who is employed by or contracts with
a self-insured employer to administer the plan of self-insurance is an agent of
the self-insured employer, and if he or she violates any provision of this
chapter or chapter 616A, 616C, 616D
or 617 of NRS, the self-insured employer is
liable for any penalty assessed because of that violation.

1. Except as otherwise provided in NRS 616D.120, before any action may be
taken pursuant to subsection 2, the Commissioner of Insurance shall arrange an
informal meeting with the self-insured employer to discuss and seek correction
of any conduct which would be grounds for withdrawal of the self-insured
employer’s certificate of self-insurance.

2. Except as otherwise provided in NRS 616D.120, before the withdrawal of
the certification of any self-insured employer, the Commissioner of Insurance
shall give written notice to that employer by certified mail that the
employer’s certification will be withdrawn 10 days after receipt of the notice
unless, within that time, the employer corrects the conduct set forth in the
notice as the reason for the withdrawal or submits a written request for a
hearing to the Commissioner of Insurance. Before requesting a hearing the
employer must make the deposit required by NRS
616B.300.

3. If the employer requests a hearing:

(a) The Commissioner of Insurance shall set a
date for a hearing within 20 days after receiving the appeal request, and shall
give the employer at least 10 business days’ notice of the time and place of
the hearing.

(b) A record of the hearing must be kept but it
need not be transcribed unless requested by the employer with the cost of
transcription to be charged to the employer.

(c) Within 5 business days after the hearing, the
Commissioner of Insurance shall either affirm or disaffirm the withdrawal and
give the employer written notice thereof by certified mail. If withdrawal of
certification is affirmed, the withdrawal becomes effective 10 business days
after the employer receives notice of the affirmance unless within that period
of time the employer corrects the conduct which was ground for the withdrawal
or petitions for judicial review of the affirmance.

4. If the withdrawal of certification is
affirmed following judicial review, the withdrawal becomes effective 5 days
after entry of the final decree of affirmance.

NRS 616B.330Self-insured employer may appeal decision of Commissioner.Any self-insured employer who is aggrieved by
a decision of the Commissioner of Insurance may appeal in the manner set forth
in NRS 679B.310, except that any such
appeal must be filed within the time set forth in NRS
616B.327.

(Added to NRS by 1979, 1039)—(Substituted
in revision for NRS 616.298)

NRS 616B.333Disposition of security after termination of status as
self-insured employer.

1. If for any reason the status of an
employer as a self-insured employer is terminated, the security deposited under
NRS 616B.300 must remain on deposit for a period
of at least 36 months in such amount as necessary to secure the outstanding and
contingent liability arising from accidental injuries or occupational diseases
secured by such security, or to assure the payment of claims for aggravation,
payment of claims under NRS 616C.390
and payment of claims under NRS 616C.392
based on such accidental injuries or occupational diseases.

2. At the expiration of the 36-month
period, or such other period as the Commissioner deems proper, the Commissioner
may accept, in lieu of any security so deposited, a policy of paid-up insurance
in a form approved by the Commissioner.

1. Each self-insured employer shall
furnish audited financial statements, certified by an auditor licensed to do
business in this State, to the Commissioner annually within 120 days after the
expiration of the self-insured employer’s fiscal year.

2. The Commissioner may examine the
records and interview the employees of each self-insured employer as often as
the Commissioner deems advisable to determine the adequacy of the deposit which
the employer has made with the Commissioner, the sufficiency of reserves and
the reporting, handling and processing of injuries or claims. The Commissioner
shall examine the records for that purpose at least once every 3 years. The
self-insured employer shall reimburse the Commissioner for the cost of the
examination.

(c) Proof that the association or its third-party
administrator is licensed or otherwise authorized to conduct business in this
State pursuant to title 57 of NRS.

(d) A copy of the agreements entered into with
the association’s administrator and a third-party administrator.

(e) A copy of the bylaws of the association.

(f) A copy of an agreement jointly and severally
binding the association and each member of the association to secure the
payment of all compensation due pursuant to chapters
616A to 617, inclusive, of NRS.

(g) A pro forma financial statement prepared by
an independent certified public accountant in accordance with generally
accepted accounting principles that shows the financial ability of the
association to pay all compensation due pursuant to chapters 616A to 617,
inclusive, of NRS.

(h) A reviewed financial statement prepared by an
independent certified public accountant for each proposed member of the
association or evidence of the ability of the association or its proposed
members to provide a solvency bond pursuant to subsection 3 of NRS 616B.353.

(i) Proof that each member of the association
will make the initial payment to the association required pursuant to NRS 616B.416 on a date specified by the Commissioner.
The payment shall be deemed to be a part of the assessment required to be paid
by each member for the first year of self-insurance if certification is issued
to the association.

6. Except as otherwise provided in NRS 239.0115, any financial information
relating to a member of an association received by the Commissioner pursuant to
the provisions of this section is confidential and must not be disclosed.

7. For the purposes of this section,
“associate member of a bona fide trade association” means a supplier whose
business, as determined by the Commissioner:

(a) Is limited to a specific industry; and

(b) Primarily involves providing a product or
service that is directly used or consumed by substantially all of the members
of the trade association or bears a direct relationship to the business of the
members of the association.

(a) Execute an indemnity agreement jointly and
severally binding the association and each member of the association to secure
the payment of all compensation due pursuant to chapters
616A to 617, inclusive, of NRS. The
indemnity agreement must be in a form prescribed by the Commissioner. An
association may add provisions to the indemnity agreement if they are first
approved by the Commissioner.

(b) Except as otherwise provided in this
subsection, maintain a policy of specific and aggregate excess insurance in a
form and amount required by the Commissioner. The excess insurance must be
written by an insurer approved by the Commissioner. To determine the amount of
excess insurance required, the Commissioner shall consider:

(1) The number of members in the
association;

(2) If the association is an association
of self-insured public employers, the types of governmental services provided
by the members of the association;

(3) If the association is an association
of self-insured private employers, the classifications of employment of the
members of the association;

(4) The number of years the association
has been in existence; and

(5) Such other information as the
Commissioner deems necessary.

Ê Nothing in
this paragraph prohibits an association from purchasing secondary excess
insurance in addition to the excess insurance required by this paragraph.

(c) Collect an annual assessment from each member
of the association in an aggregate amount of at least $250,000 or in an
aggregate amount which the Commissioner determines is satisfactory based on an
annual review conducted by the Commissioner of the actuarial solvency of the
association.

(d) Except as otherwise provided in paragraph
(e), deposit as security with the Commissioner a bond executed by the
association as principal, and by a licensed surety, payable to the State of
Nevada, and conditioned upon the payment of compensation for injuries and occupational
diseases to their employees. The bond must be in an amount determined by the
Commissioner to be reasonably sufficient to ensure payment of such
compensation, but in no event may it be less than $100,000.

(e) In lieu of a bond, deposit with the
Commissioner a like amount of lawful money of the United States or any other
form of security authorized by NRS 100.065.
If security is provided in the form of a savings certificate, certificate of
deposit or investment certificate, the certificate must state that the amount
is unavailable for withdrawal except upon order of the Commissioner.

2. Except as otherwise provided in
subsection 3, in addition to complying with the requirements of subsection 1,
an association of self-insured private employers shall:

(a) At the time of initial qualification and
until the association has operated successfully as a qualified association of
self-insured private employers for 3 years, as determined by the Commissioner,
have a combined tangible net worth of all members in the association of at
least $2,500,000, as evidenced by a statement of tangible net worth provided to
the Division of Insurance of the Department of Business and Industry by an
independent certified public accountant; or

(b) After 3 years of successful operation as a
qualified association of self-insured private employers, as determined by the
Commissioner, have combined net cash flows from operating activities plus net
cash flows from financing activities of all members in the association of five
times the average of claims paid for each of the last 3 years or $7,500,000,
whichever is less.

3. In lieu of complying with the
requirements of subsection 2, the association’s administrator shall ensure that
a solvency bond, in a form prescribed by the Commissioner and in an aggregate
amount of at least $2,500,000, is deposited with the Commissioner by the
association or members of the association on behalf of the association.

4. The association’s administrator shall
deposit with the Commissioner a bond executed by the association’s
administrator as principal, and by a licensed surety, payable to the State of
Nevada, and conditioned upon the faithful performance of his or her duties. The
bond must be in an amount determined by the Commissioner.

5. Any third-party administrator providing
claims services for the association shall deposit with the Commissioner a bond
executed by the third-party administrator as principal, and by a licensed
surety, payable to the State of Nevada, and conditioned upon the faithful
performance of its duties. The bond must be in an amount determined by the
Commissioner.

6. The Commissioner may increase or
decrease the amount of any bond or money required to be deposited by this
section in accordance with chapter 681B of
NRS and the Commissioner’s regulations for loss reserves in casualty insurance.
If the Commissioner requires an association, association’s administrator or
third-party administrator to increase its deposit, the Commissioner may specify
the form of the additional security. The association, association’s
administrator or third-party administrator shall comply with such a requirement
within 60 days after receiving notice from the Commissioner.

7. The Account for Associations of
Self-Insured Public and Private Employers is hereby created in the State Agency
Fund for Bonds. All money received by the Commissioner pursuant to this section
must be deposited with the State Treasurer to the credit of the Account. All
claims against this Account must be paid as other claims against the State are
paid.

NRS 616B.356Certificate of authority required before surety or bonding
company may furnish bond or other security for association.A surety or bonding company shall not furnish
a bond or any other form of security required by the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS for an association of self-insured
public or private employers or a member of such an association unless the
surety or bonding company holds a certificate of authority issued by the
Commissioner.

NRS 616B.359Certificate of qualification as an association of self-insured
employers: Time for consideration of application; issuance by Commissioner;
contents; effective date; period certificate is in effect; cancellation by
association.

1. The Commissioner shall grant or deny an
application for certification as an association of self-insured public or
private employers within 60 days after receiving the application. If the
application is materially incomplete or does not comply with the applicable
provisions of the law, the Commissioner shall notify the applicant of the
additional information or changes required. Under such circumstances, if the
Commissioner is unable to act upon the application within this 60-day period,
the Commissioner may extend the period for granting or denying the application,
but for not longer than an additional 90 days.

2. Upon determining that an association is
qualified as an association of self-insured public or private employers, the
Commissioner shall issue a certificate to that effect to the association and
the association’s administrator. No certificate may be issued to an association
that, within the 2 years immediately preceding its application, has had its
certification as an association of self-insured public or private employers
involuntarily withdrawn by the Commissioner.

3. A certificate issued pursuant to this
section must include, without limitation:

(a) The name of the association;

(b) The name of each employer who the
Commissioner determines is a member of the association at the time of the
issuance of the certificate;

(c) An identification number assigned to the
association by the Commissioner; and

(d) The date on which the certificate was issued.

4. A certificate issued pursuant to this
section remains in effect until the certificate is withdrawn by the
Commissioner, the certificate is cancelled at the request of the association or
an association does not pay, in addition to any other fee or charge, all
applicable fees required pursuant to NRS
680C.110. Coverage for an association granted a certificate becomes
effective on the date of certification or the date specified in the
certificate.

5. The Commissioner shall not grant a
request to cancel a certificate unless the association has insured or reinsured
all incurred obligations with an insurer authorized to do business in this
State pursuant to an agreement filed with and approved by the Commissioner. The
agreement must include coverage for actual claims and claims incurred but not
reported, and the expenses associated with those claims.

NRS 616B.362Effect of certification; responsibility of association to
provide compensation and administer claims.

1. An association certified as an
association of self-insured public or private employers directly assumes the
responsibility for providing compensation due the employees of the members of
the association and their beneficiaries under chapters
616A to 617, inclusive, of NRS.

2. An association is not required to pay
the premiums required of other employers pursuant to chapters 616A to 617,
inclusive, of NRS but is relieved from other liability for personal injury to
the same extent as are other employers.

3. The claims of employees and their
beneficiaries resulting from injuries while in the employment of a member of an
association must be handled in the manner provided by chapters 616A to 616D, inclusive, of NRS, and the association
is subject to the regulations of the Division with respect thereto.

4. The security deposited pursuant to NRS 616B.353 does not relieve an association from
responsibility for the administration of claims and payment of compensation
under chapters 616A to 617, inclusive, of NRS.

1. An association of self-insured public
or private employers must be operated by a board of trustees consisting of at
least five members whom the members of the association elect for terms set
forth in the bylaws of the association. If the association is an association of
self-insured:

(a) Public employers, the members of the board of
trustees must be officers or employees of the public employers who are members
of the association.

(b) Private employers, at least two-thirds of the
members of the board of trustees must be employees, officers or directors of
the members of the association. No association’s administrator or third-party
administrator employed by the association, or any owner, officer, employee or
other person affiliated with the association’s administrator or third-party
administrator, may serve as a member of the board of trustees. Each member of
the board of trustees must be a resident of this State or an officer of a
corporation authorized to do business in this State.

2. The board of trustees of an association
shall:

(a) Ensure the prompt payment of any compensation
due pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS.

(b) Take such actions as are necessary to protect
the assets of the association.

(c) Employ full-time an association’s
administrator to carry out the policies of the board of trustees and perform
such duties as the board delegates to him or her. An association’s
administrator shall not perform any of the duties assigned to a third-party
administrator.

(d) Employ a third-party administrator to carry
out the duties set forth in NRS 616B.503.

(e) Employ an independent certified public
accountant to prepare the statement of financial condition required by NRS 616B.404.

(f) Maintain minutes of its meetings and make the
minutes available for inspection by the Commissioner.

3. The board of trustees of an association
shall not:

(a) Extend credit to any member of the association
for the payment of that member’s annual assessment, except pursuant to a
payment plan approved by the Commissioner.

(b) Borrow any money from the association or in
the name of the association, except in the ordinary course of its business,
without the prior approval of the Commissioner.

1. The board of trustees of an association
of self-insured public or private employers is responsible for the money
collected and disbursed by the association.

2. The board of trustees shall:

(a) Establish a claims account in a financial
institution in this State which is approved by the Commissioner and which is
federally insured or insured by a private insurer approved pursuant to NRS 678.755. Except as otherwise provided
in subsection 3, at least 75 percent of the annual assessment collected by the
association from its members must be deposited in this account to pay:

(1) Claims;

(2) Expenses related to those claims;

(3) The costs associated with the
association’s policy of excess insurance; and

(b) Establish an administrative account in a
financial institution in this State which is approved by the Commissioner and
which is federally insured or insured by a private insurer approved pursuant to
NRS 678.755. The amount of the annual
assessment collected by the association that is not deposited in its claims
account must be deposited in this account to pay the administrative expenses of
the association.

3. The Commissioner may authorize an
association to deposit less than 75 percent of its annual assessment in its
claims account if the association presents evidence to the satisfaction of the
Commissioner that:

(a) More than 25 percent of the association’s
annual assessment is needed to maintain its programs for loss control and
occupational safety; and

(b) The association’s policy of excess insurance
attaches at less than 75 percent.

4. The board of trustees may invest the
money of the association not needed to pay the obligations of the association
pursuant to chapter 682A of NRS.

5. The Commissioner shall review the
accounts of an association established pursuant to this section at such times
as the Commissioner deems necessary to ensure compliance with the provisions of
this section.

1. An association’s administrator employed
by an association of self-insured public or private employers, or an employee,
officer or director of an association’s administrator, may not be an employee,
officer or director of a third-party administrator employed by the association
or have a direct or indirect financial interest in the third-party
administrator of the association.

2. The third-party administrator of an
association of self-insured public or private employers, or an employee,
officer or director of the third-party administrator, may not be an employee,
officer or director of an association’s administrator employed by the
association or have a direct or indirect financial interest in that
association’s administrator.

3. Any contract entered into by an
association of self-insured public or private employers and a third-party
administrator must include a provision which states that, unless the
Commissioner otherwise provides, the third-party administrator shall administer
any claim or other obligation of the association to its conclusion during the
period of the contract.

1. Except as otherwise provided in this
section, a person shall not advertise or offer for sale in this State any
policies or memberships or solicit or receive any money, subscriptions,
applications, premiums, assessments, memberships or any other fee or charge in
connection with a proposed association of self-insured public or private
employers unless the person has obtained a solicitor’s permit from the
Commissioner.

2. To obtain a solicitor’s permit, a
person must file a written application with the Commissioner. The application
must include:

(a) The name, type and purposes of the
association formed or proposed to be formed or financed;

(b) On forms furnished by the Commissioner, for
each person associated or to be associated as director, promoter, manager,
member of the board or in another similar capacity in the association, or in
the formation of the proposed association or in the proposed financing:

(1) His or her name, residential address
and qualifications;

(2) His or her business, professional or
employment experience for the preceding 10 years; and

(3) A complete set of his or her
fingerprints which the Commissioner may forward to the Central Repository for
Nevada Records of Criminal History for submission to the Federal Bureau of
Investigation for its report;

(c) A full disclosure of the terms of all
pertinent understandings and agreements existing or proposed among any persons
or entities so associated or to be associated, and a copy of each such
agreement;

(d) A copy of the articles of incorporation and
bylaws of a solicitor, if incorporated;

(e) The plan according to which solicitations are
to be made and a reasonably detailed estimate of all administrative and sales
expenses to be incurred;

(f) A copy of any certificate proposed to be
offered, and a copy of any proposed application therefor;

(g) A copy of any prospectus, offering circular,
advertising or sales literature or materials proposed to be used;

(h) Proof of an escrow account and agreement for
the deposit of all funds collected during the formation of the association; and

(i) Such additional pertinent information as the
Commissioner may reasonably require.

3. The application must be accompanied by
a fee of $500 for the filing of the application and for the issuance of the
permit, if granted. A solicitor must submit this fee each year thereafter if
the solicitor continues to recruit new members for an association.

4. A person who violates subsection 1 is
guilty of a category D felony and shall be punished as provided in NRS 193.130.

5. The provisions of this section do not
apply to:

(a) A bona fide trade association that has been
in existence for at least 5 years and solicits members of its trade
association; or

(b) A person who is employed by:

(1) Current members of an association; or

(2) Employers that are considering
membership in an association,

Ê whose
primary duties do not include solicitation of potential members of the association.

1. After the filing of an application for
a solicitor’s permit, the Commissioner shall promptly cause an investigation to
be made of:

(a) The identity, character, reputation,
experience, financial standing and motives of the persons proposing to
organize, promote or finance the association of self-insured public or private
employers;

(b) The character, financial responsibility,
management experience and business qualifications of the officers, directors
and managers of the existing or proposed association; and

(c) Any other aspects of the solicitor,
association or proposed financing as the Commissioner deems advisable.

2. The Commissioner shall expeditiously
examine an application for a solicitor’s permit and complete the investigation
required pursuant to subsection 1. Except as otherwise provided in subsection
3, if the Commissioner finds after performing an examination and investigation
that:

(a) The application is complete and the
applicable fee has been paid;

(b) The documents filed with the application are
proper in form; and

(c) The proposed financing is reasonable and
adequate in amount for the purposes intended and the applicant is otherwise
entitled to the permit,

Ê the
Commissioner shall issue a permit and assign a permit number to the applicant.

3. If the Commissioner does not so find,
or finds that:

(a) The applicant is not competent, trustworthy,
financially responsible or of good personal and business reputation;

(b) Any of the persons associated or to be
associated with the association are not of good reputation as to business
affairs or financial responsibility; or

(c) There is material variance, adverse to the
applicant, as between the information furnished by the applicant in connection
with the application and that determined by the Commissioner on investigation,

Ê the Commissioner
shall give notice to the applicant that a permit will not be granted, stating
the particulars of the grounds for the denial. The Commissioner shall not
refund the fee for the filing of the application.

NRS 616B.380Solicitor’s permit: Power of Commissioner to suspend or revoke
permit; hearing required.

1. The Commissioner may suspend or revoke
a solicitor’s permit if the Commissioner reasonably believes that:

(a) A violation of this chapter or chapter 616A, 616C,
616D or 617
of NRS or title 57 of NRS or the terms of the permit or any proper order of the
Commissioner has occurred; or

(b) A material misrepresentation in the offering
or sale of securities, policies or memberships pursuant to the permit has
occurred.

2. If the Commissioner suspends or revokes
a permit pursuant to subsection 1, the Commissioner shall expeditiously conduct
a hearing, giving the holder of the permit a reasonable opportunity to appear
and be heard.

NRS 616B.383Advertisements or written materials to join association of
self-insured public or private employers; solicitor to provide to Commissioner
upon request copy of document relating to solicitation.

1. Any advertising or written material
that solicits employers to join an association of self-insured public or
private employers must contain the permit number of the solicitor.

2. A solicitor shall provide to the
Commissioner upon request a copy of any document relating to a solicitation
which was prepared after the solicitor filed his or her application for a
permit.

NRS 616B.386Membership in association: Application; eligibility; authority
of association to determine eligibility; termination by member; cancellation by
association; information to be provided to Commissioner; provision of
compensation after membership has ceased.

1. If an employer wishes to become a
member of an association of self-insured public or private employers, the
employer must:

(a) Submit an application for membership to the
board of trustees or third-party administrator of the association; and

2. The membership of the applicant becomes
effective when each member of the association approves the application or on a
later date specified by the association. The application for membership and the
action taken on the application must be maintained as permanent records of the
board of trustees.

3. Each member who is a member of an
association during the 12 months immediately following the formation of the
association must:

(a) Have a tangible net worth of at least
$500,000; or

(b) Have had a reported payroll for the previous
12 months which would have resulted in a manual premium of at least $15,000,
calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765.

4. An employer who seeks to become a
member of the association after the 12 months immediately following the
formation of the association must meet the requirement set forth in paragraph
(a) or (b) of subsection 3 unless the Commissioner adjusts the requirement for
membership in the association after conducting an annual review of the
actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353.

5. An association of self-insured private
employers may apply to the Commissioner for authority to determine the amount
of tangible net worth and manual premium that an employer must have to become a
member of the association. The Commissioner shall approve the application if
the association:

(a) Has been certified to act as an association
for at least the 3 consecutive years immediately preceding the date on which
the association filed the application with the Commissioner;

(b) Has, as determined by the Commissioner,
either:

(1) A combined tangible net worth of all
members in the association of at least $5,000,000; or

(2) Combined net cash flows from operating
activities plus net cash flows from financing activities of all members in the
association of five times the average of claims paid for each of the last 3
years or $7,500,000, whichever is less;

(c) Has at least 15 members; and

(d) Has not been required to meet informally with
the Commissioner pursuant to subsection 1 of NRS
616B.431 during the 18-month period immediately preceding the date on which
the association filed the application with the Commissioner or, if the
association has been required to attend such a meeting during that period, has
not had its certificate withdrawn before the date on which the association
filed the application.

6. An association of self-insured private
employers may apply to the Commissioner for authority to determine the
documentation demonstrating solvency that an employer must provide to become a
member of the association. The Commissioner shall approve the application if
the association:

(a) Has been certified to act as an association
for at least the 3 consecutive years immediately preceding the date on which
the association filed the application with the Commissioner;

(b) Has, as determined by the Commissioner,
either:

(1) A combined tangible net worth of all
members in the association of at least $5,000,000; or

(2) Combined net cash flows from operating
activities plus net cash flows from financing activities of all members in the
association of five times the average of claims paid for each of the last 3
years or $7,500,000, whichever is less; and

(c) Has at least 15 members.

7. The Commissioner may withdraw approval
of an application submitted pursuant to subsection 5 or 6 if the Commissioner
determines the association has ceased to comply with any of the requirements
set forth in subsection 5 or 6, as applicable.

8. A member of an association may
terminate his or her membership at any time. To terminate his or her
membership, a member must submit to the association’s administrator a notice of
intent to withdraw from the association at least 120 days before the effective
date of withdrawal. The notice of intent to withdraw must include a statement
indicating that the member has:

(a) Been certified as a self-insured employer
pursuant to NRS 616B.312;

(b) Become a member of another association of
self-insured public or private employers; or

(c) Become insured by a private carrier.

9. The members of an association may
cancel the membership of any member of the association in accordance with the
bylaws of the association.

10. The association shall:

(a) Within 30 days after the addition of an
employer to the membership of the association, notify the Commissioner of the
addition and:

(1) If the association has not received
authority from the Commissioner pursuant to subsection 5 or 6, as applicable,
provide to the Commissioner all information and assurances for the new member
that were required from each of the original members of the association upon
its organization; or

(2) If the association has received
authority from the Commissioner pursuant to subsection 5 or 6, as applicable,
provide to the Commissioner evidence that is satisfactory to the Commissioner
that the new member is a member or associate member of the bona fide trade
association as required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of the indemnity agreement that
jointly and severally binds the new member, the other members of the
association and the association that is required to be executed pursuant to
paragraph (a) of subsection 1 of NRS 616B.353 and
any other information the Commissioner may reasonably require to determine
whether the amount of security deposited with the Commissioner pursuant to
paragraph (d) or (e) of subsection 1 of NRS 616B.353
is sufficient, but such information must not exceed the information required to
be provided to the Commissioner pursuant to subparagraph (1);

(b) Notify the Commissioner and the Administrator
of the termination or cancellation of the membership of any member of the
association within 10 days after the termination or cancellation; and

(c) At the expense of the member whose membership
is terminated or cancelled, maintain coverage for that member for 60 days after
notice is given pursuant to paragraph (b), unless the association first
receives notice from the Administrator that the member has:

(1) Been certified as a self-insured
employer pursuant to NRS 616B.312;

(2) Become a member of another association
of self-insured public or private employers; or

(3) Become insured by a private carrier.

11. If a member of an association changes
his or her name or form of organization, the member remains liable for any
obligations incurred or any responsibilities imposed pursuant to chapters 616A to 617,
inclusive, of NRS under the member’s former name or form of organization.

12. An association is liable for the
payment of any compensation required to be paid by a member of the association
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS during the member’s period of
membership. The insolvency or bankruptcy of a member does not relieve the
association of liability for the payment of the compensation.

NRS 616B.388Provision of member information upon request.If a member of an association of self-insured
public or private employers requests, in writing, information required for the
member’s certificate of insurance, the association shall, within 30 days after
receiving the request, provide to the member information regarding claims paid
and reserves for claims incurred that are maintained on behalf of the member.

NRS 616B.392Notification of Commissioner required if change in information
submitted for certification.

1. An association of self-insured public
or private employers shall notify the Commissioner of any change in the
information submitted in its application for certification or in the manner of
its compliance with NRS 616B.353 not later than 30
days after the change.

2. For the purposes of this section, the
addition of an employer to the membership of an association of self-insured
private employers is not a change in the information that the association
submitted in its application for certification.

NRS 616B.395Examination of books, records, accounts and assets of
association by Commissioner; payment of related expenses.

1. The Commissioner may examine the books,
records, accounts and assets of an association of self-insured public or
private employers as the Commissioner deems necessary to carry out the
provisions of NRS 616B.350 to 616B.446, inclusive.

2. The expense of any examination
conducted pursuant to this section must be paid by the association.

(Added to NRS by 1993, 675)—(Substituted
in revision for NRS 616.3794)

NRS 616B.398Commissioner is agent of association for receipt of initial
legal process.An association of
self-insured public or private employers shall be deemed to have appointed the
Commissioner as its agent to receive any initial legal process authorized by
law to be served upon the association for as long as the association is
obligated to pay any compensation under chapters
616A to 616D, inclusive, or chapter 617 of NRS.

1. An association of self-insured public
or private employers shall file with the Commissioner an audited statement of
financial condition prepared by an independent certified public accountant. The
statement must be filed on or before May 1 of each year or within 120 days
after the conclusion of the association’s fiscal year and must contain
information for the previous fiscal year.

2. The statement required by subsection 1
must be in a form prescribed by the Commissioner and include, without
limitation:

(a) A statement of the reserves for:

(1) Actual claims and expenses;

(2) Claims incurred but not reported, and
the expenses associated with those claims;

(3) Assessments that are due, but not
paid; and

(4) Unpaid debts, which must be shown as
liabilities.

(b) An actuarial opinion regarding reserves that
is prepared by a member of the American Academy of Actuaries or another
specialist in loss reserves identified in the annual statement adopted by the
National Association of Insurance Commissioners. The actuarial opinion must
include a statement of:

(1) Actual claims and the expenses
associated with those claims; and

(2) Claims incurred but not reported, and
the expenses associated with those claims.

3. The Commissioner may adopt a uniform
financial reporting system for associations of self-insured public and private
employers to ensure the accurate and complete reporting of financial
information.

4. The Commissioner may require the filing
of such other reports as the Commissioner deems necessary to carry out the
provisions of this section, including, without limitation:

(a) Audits of the payrolls of the members of an
association of self-insured public or private employers;

NRS 616B.407Calculation of annual assessment paid by each member of
association.

1. Except as otherwise provided in
subsection 2, the annual assessment required to be paid by each member of an
association of self-insured public or private employers must be:

(a) Calculated by a rate service organization
that is licensed pursuant to chapter 686B
of NRS; and

(b) Based on the premium rate for the standard
industrial classification of that member, adjusted by the member’s individual
experience.

Ê If approved
by the Commissioner, payments of assessments may be reduced by an amount based
on the association’s level of expenses and loss experience.

2. If approved by the Commissioner, an
association may calculate the annual assessment required to be paid by each
member of the association. An assessment calculated by the association must be
based on at least 5 years of the member’s individual experience.

1. The Commissioner shall cause to be
conducted at least annually an audit of each association of self-insured public
or private employers in order to verify:

(a) The standard industrial classification of
each member of the association;

(b) The individual experience of each member of
the association;

(c) The payroll of each member of the
association; and

(d) The assessment required to be paid by each
member of the association.

2. The audit required by this section must
be conducted by an auditor approved by the Commissioner.

3. A report of the audit must be filed
with the Commissioner in a form required by the Commissioner.

4. The association or any member of the
association may request a hearing before the Commissioner to object to any
standard industrial classification assigned to a member of the association as a
result of the audit. If the Commissioner determines that the assessment
required to be paid by any member of the association is:

(a) Insufficient because of the standard
industrial classification assigned to the member, the Commissioner shall order
the association to collect from that member any amount required to recover the
deficiency.

(b) Excessive because of the standard industrial
classification assigned to the member, the Commissioner shall order the
association to pay to the member the excess amount collected.

5. The expenses of any audit conducted
pursuant to this section must be paid by the association.

(Added to NRS by 1993, 676)—(Substituted
in revision for NRS 616.37957)

NRS 616B.413Payment of dividends to members of association.

1. If the assets of an association of
self-insured public or private employers exceed the amount necessary for the
association to:

(a) Pay its obligations and administrative
expenses;

(b) Carry reasonable reserves; and

(c) Provide for contingencies,

Ê the board of
trustees of the association may, after obtaining the approval of the
Commissioner, declare and distribute dividends to the members of the
association.

2. Any dividend declared pursuant to
subsection 1 must be distributed not less than 12 months after the end of the
fund year.

3. A dividend may be paid only to those
members who are members of the association for the entire fund year. The
payment of a dividend must not be conditioned upon the member continuing his or
her membership in the association after the fund year.

4. An association shall give to each
prospective member of the association a written description of its plan for
distributing dividends when the prospective member applies for membership in
the association.

NRS 616B.416Plan for payment of annual assessments by members of
association.

1. Each association of self-insured public
or private employers shall adopt a plan for the payment of annual assessments
by the members of the association which must be approved by the Commissioner.

2. The plan must include a requirement
for:

(a) An initial payment, in advance, of a portion
of the annual assessment due from each member of the association. If the
association is an association of self-insured public employers, the initial
payment must be in an amount approved by the Commissioner. If the association
is an association of self-insured private employers, the initial payment must
be in an amount equal to at least 25 percent of the member’s annual assessment.

(b) Payment of the balance of the annual
assessment due in quarterly or monthly installments.

(Added to NRS by 1993, 677)—(Substituted
in revision for NRS 616.37965)

NRS 616B.422Insufficient assets to pay compensation due and maintain
reserves.

1. If the assets of an association of
self-insured public or private employers are insufficient to make certain the
prompt payment of all compensation under chapters
616A to 617, inclusive, of NRS and to
maintain the reserves required by NRS 616B.419,
the association shall immediately notify the Commissioner of the deficiency
and:

(a) Transfer any surplus acquired from a previous
fund year to the current fund year to make up the deficiency;

(b) Transfer money from its administrative
account to its claims account;

(c) Collect an additional assessment from its
members in an amount required to make up the deficiency; or

(d) Take any other action to make up the
deficiency which is approved by the Commissioner.

2. If the association wishes to transfer
any surplus from one fund year to another, the association must first notify
the Commissioner of the transfer.

3. The Commissioner shall order the
association to make up any deficiency pursuant to subsection 1 if the
association fails to do so within 30 days after notifying the Commissioner of
the deficiency. The association shall be deemed insolvent if it fails to:

(a) Collect an additional assessment from its
members within 30 days after being ordered to do so by the Commissioner; or

(b) Make up the deficiency in any other manner
within 60 days after being ordered to do so by the Commissioner.

NRS 616B.425Order by Commissioner to cease and desist; penalty for violation
of order.

1. The Commissioner may issue an order
requiring an association of self-insured public or private employers or a
member of the association to cease and desist from engaging in any act or
practice found to be in violation of any provision of NRS
616B.350 to 616B.446, inclusive, or any regulation
adopted pursuant thereto.

2. If the Commissioner determines that an
association or a member of the association has violated an order to cease and
desist, the Commissioner may impose an administrative fine of not more than
$10,000 for each violation of the order, not to exceed an aggregate amount of
$100,000, or withdraw the certificate of the association, or both.

1. The Commissioner may impose an
administrative fine for each violation of any provision of NRS 616B.350 to 616B.446,
inclusive, or any regulation adopted pursuant thereto. Except as otherwise
provided in those sections, the amount of the fine may not exceed $1,000 for
each violation or an aggregate amount of $10,000.

2. The Commissioner may withdraw the
certificate of an association of self-insured public or private employers if:

(a) The association’s certificate was obtained by
fraud;

(b) The application for certification contained a
material misrepresentation;

(c) The association is found to be insolvent;

(d) The association fails to have five or more
members;

(e) The association fails to pay the costs of any
examination or any penalty, fee or assessment required by the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;

(f) The association fails to comply with any of
the provisions of this chapter or chapter 616A,
616C, 616D
or 617 of NRS, or any regulation adopted
pursuant thereto;

(g) The association fails to comply with any
order of the Commissioner within the time prescribed by the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or in the order of the Commissioner;
or

(h) The association or its third-party
administrator misappropriates, converts, illegally withholds or refuses to pay
any money to which a person is entitled and that was entrusted to the
association in its fiduciary capacity.

3. If the Commissioner withdraws the
certification of an association of self-insured public or private employers,
each employer who is a member of the association remains liable for his or her
obligations incurred before and after the order of withdrawal.

4. Any employer who is a member of an
association whose certification is withdrawn shall, on the effective date of
the withdrawal, qualify as an employer pursuant to NRS
616B.650.

1. Except as otherwise provided in NRS 616D.120, before any action may be
taken pursuant to subsection 2, the Commissioner shall arrange an informal
meeting with an association of self-insured public or private employers to
discuss and seek correction of any conduct which would be grounds for
withdrawal of the certificate of the association.

2. Except as otherwise provided in
subsection 3 and NRS 616D.120, before
the withdrawal of the certificate of any association of self-insured public or
private employers, the Commissioner shall give written notice to the
association by certified mail that its certificate will be withdrawn 10 days
after receipt of the notice unless, within that time, the association corrects
the conduct set forth in the notice as the reason for the withdrawal or submits
a written request for a hearing to the Commissioner.

3. The Commissioner may grant additional
time, not to exceed an additional 120 days, before the withdrawal of the
certificate of an association if:

(a) The grounds for withdrawal of the certificate
of the association are based on paragraph (d) of subsection 2 of NRS 616B.428; and

(b) The association is financially sound and
capable of fulfilling its commitments.

4. If the association requests a hearing:

(a) The Commissioner shall set a date for a
hearing within 20 days after receiving the request and give the association at
least 10 business days’ notice of the time and place of the hearing.

(b) A record of the hearing must be kept, but it
need not be transcribed unless requested by the association with the cost of
transcription to be charged to the association.

(c) Within 5 business days after the hearing, the
Commissioner shall either affirm or disaffirm the withdrawal and give the
association written notice thereof by certified mail. If withdrawal of
certification is affirmed, the withdrawal becomes effective 10 business days
after the association receives notice of the affirmance unless within that
period the association corrects the conduct which was grounds for the
withdrawal or petitions for judicial review of the affirmance.

5. If the withdrawal of certification is
affirmed following judicial review, the withdrawal becomes effective 5 days
after entry of the final decree of affirmance.

NRS 616B.434Retention by Commissioner of security deposit in event of
termination of association.

1. If for any reason the status of an
association of self-insured public or private employers as an association of
self-insured employers is terminated, the security deposited under NRS 616B.353 must remain on deposit for at least 36
months in such an amount as is necessary to secure the outstanding and
contingent liability arising from accidental injuries or occupational diseases
secured by the security, or to assure the payment of claims for aggravation,
payment of claims under NRS 616C.390
and payment of claims under NRS 616C.392
based on such accidental injuries or occupational diseases.

2. At the expiration of the 36-month
period, or such other period as the Commissioner deems proper, the Commissioner
may accept, in lieu of any security so deposited, a policy of paid-up insurance
in a form approved by the Commissioner.

NRS 616B.437Judicial review of Commissioner’s decision.Any association of self-insured public or
private employers that is aggrieved by a decision of the Commissioner may
petition for judicial review in the manner provided by chapter 233B of NRS.

(Added to NRS by 1993, 679)—(Substituted
in revision for NRS 616.37987)

1. For the purposes of NRS 616B.350 to 616B.446,
inclusive, an association of self-insured public or private employers is
insolvent if it is unable to pay its outstanding obligations as they mature in
the regular course of its business.

2. If an association of self-insured
public or private employers becomes insolvent, institutes any voluntary
proceeding pursuant to the Bankruptcy Act or is named in any voluntary
proceeding thereunder, makes a general or special assignment for the benefit of
creditors or fails to pay compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for the payment of any
claim becomes final, the Commissioner may, after giving at least 10 days’
notice to the association and any insurer or guarantor, use money or interest
on securities, sell securities or institute legal proceedings on surety bonds
deposited with the Commissioner to the extent necessary to make those payments.

3. A licensed surety providing a surety
bond pursuant to NRS 616B.353 may terminate
liability on its surety bond by giving the Commissioner and the association,
association’s administrator or third-party administrator 90 days’ written
notice. The termination does not limit liability that was incurred under the
surety bond before the termination. If the association fails to requalify as an
association of self-insured public or private employers on or before the
termination date, the association’s certificate is withdrawn when the
termination becomes effective.

NRS 616B.443Assessment of all associations to provide for claims against
insolvent association; Account for Insolvent Associations of Self-Insured
Public or Private Employers.

1. The Commissioner may assess all
associations of self-insured public or private employers to provide for claims
against any insolvent association.

2. All money received from such
assessments must be deposited with the State Treasurer to the credit of the
Account for Insolvent Associations of Self-Insured Public or Private Employers,
which is hereby created in the Fund for Workers’ Compensation and Safety. Money
in the Account must be used solely to carry out the provisions of this section.
All claims against the Account must be paid as other claims against the State
are paid. The State Treasurer shall invest money in the Account in the same
manner and in the same securities in which the State Treasurer may invest money
in the State General Fund. Income realized from the investment of the money in
the Account must be credited to the Account.

(Added to NRS by 1993, 680)—(Substituted
in revision for NRS 616.37995)

NRS 616B.446Regulations.The
Commissioner may adopt such regulations as are necessary to carry out the
provisions of NRS 616B.350 to 616B.446, inclusive.

NRS 616B.460Election by employer to purchase industrial insurance from
private carrier; cancellation of policy by employer to purchase insurance from
another insurer.

1. An employer may elect to purchase industrial
insurance from a private carrier for his or her employees pursuant to chapters 616A to 617,
inclusive, of NRS.

2. An employer who cancels a policy of
industrial insurance to elect to purchase insurance from an insurer other than
the employer’s present insurer shall comply with the reporting requirements of NRS 616B.461.

1. An employer who cancels a policy of
industrial insurance issued to the employer by a private carrier shall notify
the Administrator in writing within 20 days after the cancellation, specifying
the date on which the cancellation became effective, unless the employer’s
subsequent insurer is a private carrier who has already notified the
Administrator pursuant to subsection 2 that it has issued a new policy to that
employer. The notice must be served personally or sent by first-class mail or
electronic transmission to the Administrator. If the employer has secured
insurance with another insurer that could cause double coverage, the date on
which cancellation of the previous policy became effective must be the
effective date of the new insurance.

2. A private carrier shall notify the
Administrator in writing within 15 days after the private carrier:

(a) Issues a policy of industrial insurance.

(b) Renews a policy of industrial insurance.

(c) Reinstates a policy of industrial insurance
that had been temporarily cancelled.

(d) Cancels or does not renew a policy of
industrial insurance.

3. If the Administrator believes that a
private carrier has inaccurately reported the information required pursuant to
subsection 2 and notifies the private carrier of the alleged inaccuracy, the
private carrier shall within 30 calendar days after receiving the notification:

(a) Investigate the alleged inaccuracy; and

(b) Submit to the Administrator accurate
information or information proving that the previously submitted information
was accurate.

4. During the period of investigation by
the private carrier, the Administrator may not impose any administrative fines,
issue a notice of correction or take any other corrective action against the
private carrier. If the private carrier is able to prove that the information
originally submitted to the Administrator or, if applicable, the designated
agent of the Administrator, was accurate, the Administrator may not impose any
administrative fines, issue a notice of correction or take any other corrective
action against the private carrier. As used in this subsection, “designated agent”
means an agent who is authorized by the Administrator to receive, compile and
forward to the Administrator the information required pursuant to subsection 2.

1. Before a private carrier may provide
industrial insurance pursuant to chapters 616A
to 617, inclusive, of NRS, the private
carrier must be authorized by the Commissioner pursuant to chapter 680A of NRS and maintain such security
of the kind described in NRS 680A.120
and 680A.140 as may be required.

2. A private carrier shall not provide
industrial insurance pursuant to chapters 616A
to 617, inclusive, of NRS as an unauthorized
insurer pursuant to subsection 9 of NRS
680A.070.

3. A private carrier that is authorized by
the Commissioner to provide industrial insurance pursuant to subsection 1:

(a) Constitutes an authorized insurer, as that
term is defined in NRS 679A.030; and

(b) Is subject to the provisions of title 57 of
NRS that govern authorized insurers.

NRS 616B.466Responsibility of private carrier after withdrawal of
authorization to provide industrial insurance.If
a private carrier withdraws from providing industrial insurance in this State
or its authorization to do so is withdrawn, it remains responsible for all
compensation for injuries sustained during the period of coverage stated in its
policies.

1. The Commissioner shall suspend the
authorization of a private carrier to provide industrial insurance for 1 year
if, after a hearing thereon, the Commissioner finds that the private carrier
has intentionally or repeatedly failed to comply with the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS or the regulations of the Division or
the Commissioner.

2. A hearing to determine whether the
authorization of a private carrier to provide industrial insurance will be
suspended pursuant to subsection 1 must be conducted by the Commissioner
pursuant to the provisions of NRS
679B.310 to 679B.370, inclusive,
the regulations adopted pursuant thereto and the provisions of chapter 233B of NRS concerning adjudication of
contested cases. A record of the hearing must be kept but it need not be
transcribed unless requested by the private carrier. The cost of transcription
must be charged to the private carrier.

NRS 616B.475Requirements for handling claims; employer and private carrier
subject to regulations of Division.The
claims of employees and their dependents resulting from injuries while in the
employment of employers insured by a private carrier must be handled in the
manner provided by chapters 616A to 616D, inclusive, of NRS, and the employer and
the private carrier are subject to the regulations of the Division with respect
thereto.

1. An insurer may enter into a contract to
have his or her plan of insurance administered by a third-party administrator.

2. An insurer shall not enter into a
contract with any person for the administration of any part of the plan of
insurance unless that person maintains an office in this State and has a
certificate issued by the Commissioner pursuant to NRS 683A.08524.

1. A person shall not act as a third-party
administrator for an insurer without a certificate issued by the Commissioner
pursuant to NRS 683A.08524.

2. A person who acts as a third-party
administrator pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS shall:

(a) Administer from one or more offices located
in this State all of the claims arising under each plan of insurance that the
person administers and maintain in those offices all of the records concerning
those claims;

(b) Administer each plan of insurance directly,
without subcontracting with another third-party administrator; and

(c) Upon the termination of the person’s contract
with an insurer, transfer forthwith to a certified third-party administrator
chosen by the insurer all of the records in the person’s possession concerning
claims arising under the plan of insurance.

3. The Commissioner may, under exceptional
circumstances, waive the requirements of subsection 2.

NRS 616B.506Imposition of administrative fine for violations; withdrawal of
certification.The Commissioner
shall impose an administrative fine, not to exceed $1,000 for each violation,
and may withdraw the certification of any third-party administrator who:

1. Fails to comply with regulations of the
Commissioner regarding reports or other requirements necessary to carry out the
purposes of chapters 616A to 616D, inclusive, or chapter 617 of NRS; or

2. Violates any provision of NRS 616B.503 or any regulation adopted by the
Commissioner or the Administrator concerning the administration of the plan of
insurance.

1. A self-insured employer, an association
of self-insured public or private employers or a private carrier may:

(a) Except as otherwise provided in NRS 616B.5273, enter into a contract or contracts
with one or more organizations for managed care to provide comprehensive
medical and health care services to employees for injuries and diseases that
are compensable pursuant to chapters 616A
to 617, inclusive, of NRS.

(b) Enter into a contract or contracts with
providers of health care, including, without limitation, physicians who provide
primary care, specialists, pharmacies, physical therapists, radiologists,
nurses, diagnostic facilities, laboratories, hospitals and facilities that
provide treatment to outpatients, to provide medical and health care services
to employees for injuries and diseases that are compensable pursuant to chapters 616A to 617,
inclusive, of NRS.

(c) Require employees to obtain medical and
health care services for their industrial injuries from those organizations and
persons with whom the self-insured employer, association or private carrier has
contracted pursuant to paragraphs (a) and (b), or as the self-insured employer,
association or private carrier otherwise prescribes.

(d) Except as otherwise provided in subsection 3
of NRS 616C.090, require employees to
obtain the approval of the self-insured employer, association or private
carrier before obtaining medical and health care services for their industrial
injuries from a provider of health care who has not been previously approved by
the self-insured employer, association or private carrier.

2. An organization for managed care with
whom a self-insured employer, association of self-insured public or private
employers or a private carrier has contracted pursuant to this section shall
comply with the provisions of NRS 616B.528, 616B.5285 and 616B.529.

1. A self-insured employer, an association
of self-insured public or private employers or a private carrier shall not
enter into a contract with an organization for managed care unless the
organization’s proposed plan for providing medical and health care services:

(a) Will provide all medical and health care
services that may be required for industrial injuries and occupational diseases
that are compensable under chapters 616A to
617, inclusive, of NRS in a manner that
ensures the availability and accessibility of adequate treatment to injured
employees;

(b) Provides to injured employees an adequate
choice of providers of health care who have contracted with the organization to
participate in the proposed plan; and

(c) Provides appropriate financial incentives to
reduce costs of medical and health care services without affecting the quality
of any care provided to an injured employee.

2. The Division may adopt regulations to
ensure the adequacy of an insurer’s panel of providers of health care
established pursuant to subsection 1.

NRS 616B.528Restriction of or interference with communication between
provider of health care and injured employee prohibited.An organization for managed care shall not
restrict or interfere with any communication between a provider of health care
and an injured employee regarding any information that the provider of health
care determines is relevant to the health care of the injured employee.

NRS 616B.5285Contracts with providers of health care; prohibited acts.An organization for managed care shall not
terminate a contract with, demote, refuse to contract with or refuse to
compensate a provider of health care solely because the provider, in good
faith:

1. Advocates in private or in public on behalf
of an injured employee;

2. Assists an injured employee in seeking
reconsideration of a determination by the organization for managed care to deny
coverage for a medical or health care service; or

1. An organization for managed care shall
not offer or pay any type of material inducement, bonus or other financial
incentive to a provider of health care to deny, reduce, withhold, limit or
delay specific medically necessary medical or health care services to an
injured employee.

2. The provisions of this section do not
prohibit an arrangement for payment between an organization for managed care
and a provider of health care that uses financial incentives, if the
arrangement is designed to provide an incentive to the provider of health care
to use medical and health care services effectively and consistently in the
best interest of the treatment of the injured employee.

NRS 616B.545“Board” defined.As
used in NRS 616B.545 to 616B.560,
inclusive, unless the context otherwise requires, “Board” means the Board for
the Administration of the Subsequent Injury Account for Self-Insured Employers
created pursuant to NRS 616B.548.

1. There is hereby created the Board for
the Administration of the Subsequent Injury Account for Self-Insured Employers,
consisting of five members who are self-insured employers. The members must be
appointed by the Governor.

2. The members of the Board shall elect a
Chair and Vice Chair from among the members appointed. After the initial
election of a Chair and Vice Chair, each of those officers shall hold office
for a term of 2 years commencing on July 1 of each odd-numbered year. If a
vacancy occurs in the office of the Chair or Vice Chair, the members of the
Board shall elect a replacement for the remainder of the unexpired term.

3. Vacancies on the Board must be filled
in the same manner as original appointments.

4. The members of the Board serve without
compensation.

5. A legal counsel that has been appointed
by or has contracted with the Division pursuant to NRS 232.660 shall serve as legal counsel
of the board.

1. The members of the Board may meet
throughout each year at the times and places specified by a call of the Chair
or a majority of the Board. The Board may prescribe rules and regulations for
its own management and government. Three members of the Board constitute a
quorum, and a quorum may exercise all the power and authority conferred on the
Board. If a member of the Board submits a claim against the Subsequent Injury
Account for Self-Insured Employers, that member shall not vote on or otherwise
participate in the decision of the Board concerning that claim.

2. The Board shall administer the
Subsequent Injury Account for Self-Insured Employers in accordance with the
provisions of NRS 616B.554, 616B.557 and 616B.560.

1. There is hereby created in the Fund for
Workers’ Compensation and Safety in the State Treasury the Subsequent Injury
Account for Self-Insured Employers, which may be used only to make payments in
accordance with the provisions of NRS 616B.557 and
616B.560. The Board shall administer the Account
based upon recommendations made by the Administrator pursuant to subsection 8.

2. All assessments, penalties, bonds,
securities and all other properties received, collected or acquired by the
Board for the Subsequent Injury Account for Self-Insured Employers must be
delivered to the custody of the State Treasurer.

3. All money and securities in the Account
must be held by the State Treasurer as custodian thereof to be used solely for
workers’ compensation for employees of self-insured employers.

4. The State Treasurer may disburse money
from the Account only upon written order of the Board.

5. The State Treasurer shall invest money
of the Account in the same manner and in the same securities in which the State
Treasurer is authorized to invest State General Funds which are in the custody
of the State Treasurer. Income realized from the investment of the assets of
the Account must be credited to the Fund.

6. The Board shall adopt regulations for
the establishment and administration of assessment rates, payments and
penalties. Assessment rates must result in an equitable distribution of costs
among the self-insured employers and must be based upon expected annual
expenditures for claims for payments from the Subsequent Injury Account for
Self-Insured Employers.

7. The Commissioner shall assign an
actuary to review the establishment of assessment rates. The rates must be
filed with the Commissioner 30 days before their effective date. Any
self-insured employer who wishes to appeal the rate so filed must do so
pursuant to NRS 679B.310.

8. The Administrator shall:

(a) Evaluate any claim submitted to the Board for
payment or reimbursement from the Subsequent Injury Account for Self-Insured
Employers and recommend to the Board any appropriate action to be taken
concerning the claim; and

(b) Submit to the Board any other recommendations
relating to the Account.

NRS 616B.557Payment of cost of additional compensation resulting from
subsequent injury of employee of self-insured employer.Except as otherwise provided in NRS 616B.560:

1. If an employee of a self-insured
employer has a permanent physical impairment from any cause or origin and
incurs a subsequent disability by injury arising out of and in the course of
his or her employment which entitles the employee to compensation for
disability that is substantially greater by reason of the combined effects of
the preexisting impairment and the subsequent injury than that which would have
resulted from the subsequent injury alone, the compensation due must be charged
to the Subsequent Injury Account for Self-Insured Employers in accordance with
regulations adopted by the Board.

2. If the subsequent injury of such an
employee results in his or her death and it is determined that the death would
not have occurred except for the preexisting permanent physical impairment, the
compensation due must be charged to the Subsequent Injury Account for Self-Insured
Employers in accordance with regulations adopted by the Board.

3. As used in this section, “permanent
physical impairment” means any permanent condition, whether congenital or
caused by injury or disease, of such seriousness as to constitute a hindrance
or obstacle to obtaining employment or to obtaining reemployment if the
employee is unemployed. For the purposes of this section, a condition is not a
“permanent physical impairment” unless it would support a rating of permanent
impairment of 6 percent or more of the whole person if evaluated according to
the American Medical Association’s Guides to the Evaluation of Permanent
Impairment as adopted and supplemented by the Division pursuant to NRS 616C.110.

4. To qualify under this section for
reimbursement from the Subsequent Injury Account for Self-Insured Employers,
the self-insured employer must establish by written records that the
self-insured employer had knowledge of the “permanent physical impairment” at
the time the employee was hired or that the employee was retained in employment
after the self-insured employer acquired such knowledge.

5. A self-insured employer must submit to
the Board a claim for reimbursement from the Subsequent Injury Account for
Self-Insured Employers.

6. The Board shall adopt regulations
establishing procedures for submitting claims against the Subsequent Injury
Account for Self-Insured Employers. The Board shall notify the self-insured
employer of its decision on such a claim within 120 days after the claim is
received.

7. An appeal of any decision made
concerning a claim against the Subsequent Injury Account for Self-Insured
Employers must be submitted directly to the district court.

1. A self-insured employer who pays
compensation due to an employee who has a permanent physical impairment from
any cause or origin and incurs a subsequent disability by injury arising out of
and in the course of his or her employment which entitles the employee to
compensation for disability that is substantially greater by reason of the
combined effects of the preexisting impairment and the subsequent injury than
that which would have resulted from the subsequent injury alone is entitled to
be reimbursed from the Subsequent Injury Account for Self-Insured Employers if:

(a) The employee knowingly made a false
representation as to his or her physical condition at the time the employee was
hired by the self-insured employer;

(b) The self-insured employer relied upon the
false representation and this reliance formed a substantial basis of the
employment; and

(c) A causal connection existed between the false
representation and the subsequent disability.

Ê If the
subsequent injury of the employee results in his or her death and it is
determined that the death would not have occurred except for the preexisting
permanent physical impairment, any compensation paid is entitled to be
reimbursed from the Subsequent Injury Account for Self-Insured Employers.

2. A self-insured employer shall notify
the Board of any possible claim against the Subsequent Injury Account for
Self-Insured Employers pursuant to this section no later than 60 days after the
date of the subsequent injury or the date the self-insured employer learns of
the employee’s false representation, whichever is later.

NRS 616B.563“Board” defined.As
used in NRS 616B.563 to 616B.581,
inclusive, unless the context otherwise requires, “Board” means the Board for
the Administration of the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers created pursuant to NRS 616B.569.

NRS 616B.569Board for Administration of Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers: Creation; membership;
officers; vacancies; members serve without compensation; legal counsel.

1. There is hereby created the Board for
the Administration of the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers, consisting of five members who are
members of an association of self-insured public or private employers. The
members of the Board must be appointed by the Governor.

2. The members of the Board shall elect a
Chair and Vice Chair from among the members appointed. After the initial
election of a Chair and Vice Chair, each of those officers shall hold office
for a term of 2 years commencing on July 1 of each odd-numbered year. If a
vacancy occurs in the office of the Chair or Vice Chair, the members of the
Board shall elect a replacement for the remainder of the unexpired term.

3. Vacancies on the Board must be filled
in the same manner as original appointments.

4. The members of the Board serve without
compensation.

5. A legal counsel that has been appointed
by or has contracted with the Division pursuant to NRS 232.660 shall serve as legal counsel
of the Board.

NRS 616B.572Board for Administration of Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers: Meetings;
regulations; quorum; administration of Account.

1. The members of the Board may meet
throughout each year at the times and places specified by a call of the Chair
or a majority of the Board. The Board may prescribe rules and regulations for
its own management and government. Three members of the Board constitute a
quorum, and a quorum may exercise all the power and authority conferred on the
Board. If a member of the Board submits a claim against the Subsequent Injury
Account for Associations of Self-Insured Public or Private Employers, that
member shall not vote on or otherwise participate in the decision of the Board
concerning that claim.

2. The Board shall administer the
Subsequent Injury Account for Associations of Self-Insured Public or Private
Employers in accordance with the provisions of NRS
616B.575, 616B.578 and 616B.581.

NRS 616B.575Creation and administration of Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers; assessment rates,
payments and penalties.

1. There is hereby created in the Fund for
Workers’ Compensation and Safety in the State Treasury the Subsequent Injury
Account for Associations of Self-Insured Public or Private Employers, which may
be used only to make payments in accordance with the provisions of NRS 616B.578 and 616B.581.
The Board shall administer the Account based upon recommendations made by the
Administrator pursuant to subsection 8.

2. All assessments, penalties, bonds,
securities and all other properties received, collected or acquired by the
Board for the Subsequent Injury Account for Associations of Self-Insured Public
or Private Employers must be delivered to the custody of the State Treasurer.

3. All money and securities in the Account
must be held by the State Treasurer as custodian thereof to be used solely for
workers’ compensation for employees of members of Associations of Self-Insured
Public or Private Employers.

4. The State Treasurer may disburse money
from the Account only upon written order of the Board.

5. The State Treasurer shall invest money
of the Account in the same manner and in the same securities in which the State
Treasurer is authorized to invest State General Funds which are in the custody
of the State Treasurer. Income realized from the investment of the assets of
the Account must be credited to the Account.

6. The Board shall adopt regulations for
the establishment and administration of assessment rates, payments and
penalties. Assessment rates must result in an equitable distribution of costs
among the associations of self-insured public or private employers and must be
based upon expected annual expenditures for claims for payments from the
Subsequent Injury Account for Associations of Self-Insured Public or Private
Employers.

7. The Commissioner shall assign an
actuary to review the establishment of assessment rates. The rates must be
filed with the Commissioner 30 days before their effective date. Any
association of self-insured public or private employers that wishes to appeal
the rate so filed must do so pursuant to NRS
679B.310.

8. The Administrator shall:

(a) Evaluate any claim submitted to the Board for
payment or reimbursement from the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers and recommend to the Board any
appropriate action to be taken concerning the claim; and

(b) Submit to the Board any other recommendations
relating to the Account.

NRS 616B.578Payment of cost of additional compensation resulting from
subsequent injury of employee of member of association of self-insured public
or private employers.Except as
otherwise provided in NRS 616B.581:

1. If an employee of a member of an
association of self-insured public or private employers has a permanent
physical impairment from any cause or origin and incurs a subsequent disability
by injury arising out of and in the course of his or her employment which
entitles the employee to compensation for disability that is substantially
greater by reason of the combined effects of the preexisting impairment and the
subsequent injury than that which would have resulted from the subsequent
injury alone, the compensation due must be charged to the Subsequent Injury
Account for Associations of Self-Insured Public or Private Employers in
accordance with regulations adopted by the Board.

2. If the subsequent injury of such an
employee results in his or her death and it is determined that the death would
not have occurred except for the preexisting permanent physical impairment, the
compensation due must be charged to the Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers in accordance with
regulations adopted by the Board.

3. As used in this section, “permanent
physical impairment” means any permanent condition, whether congenital or
caused by injury or disease, of such seriousness as to constitute a hindrance
or obstacle to obtaining employment or to obtaining reemployment if the
employee is unemployed. For the purposes of this section, a condition is not a
“permanent physical impairment” unless it would support a rating of permanent
impairment of 6 percent or more of the whole person if evaluated according to
the American Medical Association’s Guides to the Evaluation of Permanent
Impairment as adopted and supplemented by the Division pursuant to NRS 616C.110.

4. To qualify under this section for
reimbursement from the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers, the association of self-insured
public or private employers must establish by written records that the employer
had knowledge of the “permanent physical impairment” at the time the employee
was hired or that the employee was retained in employment after the employer
acquired such knowledge.

5. An association of self-insured public
or private employers must submit to the Board a claim for reimbursement from
the Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers.

6. The Board shall adopt regulations
establishing procedures for submitting claims against the Subsequent Injury
Account for Associations of Self-Insured Public or Private Employers. The Board
shall notify the Association of Self-Insured Public or Private Employers of its
decision on such a claim within 120 days after the claim is received.

7. An appeal of any decision made
concerning a claim against the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers must be submitted directly to the
district court.

NRS 616B.581Reimbursement of Association of Self-Insured Public or Private
Employers for cost of additional compensation resulting from subsequent injury.

1. An association of self-insured public
or private employers that pays compensation due to an employee who has a
permanent physical impairment from any cause or origin and incurs a subsequent
disability by injury arising out of and in the course of his or her employment
which entitles the employee to compensation for disability that is
substantially greater by reason of the combined effects of the preexisting
impairment and the subsequent injury than that which would have resulted from
the subsequent injury alone is entitled to be reimbursed from the Subsequent
Injury Account for Associations of Self-Insured Public or Private Employers if:

(a) The employee knowingly made a false
representation as to his or her physical condition at the time the employee was
hired by the member of the Association of Self-Insured Public or Private
Employers;

(b) The employer relied upon the false
representation and this reliance formed a substantial basis of the employment;
and

(c) A causal connection existed between the false
representation and the subsequent disability.

Ê If the
subsequent injury of the employee results in his or her death and it is
determined that the death would not have occurred except for the preexisting
permanent physical impairment, any compensation paid is entitled to be
reimbursed from the Subsequent Injury Account for Associations of Self-Insured
Public or Private Employers.

2. An association of self-insured public
or private employers shall notify the Board of any possible claim against the
Subsequent Injury Account for Associations of Self-Insured Public or Private
Employers pursuant to this section no later than 60 days after the date of the
subsequent injury or the date the employer learns of the employee’s false
representation, whichever is later.

1. There is hereby created in the Fund for
Workers’ Compensation and Safety in the State Treasury the Subsequent Injury
Account for Private Carriers, which may be used only to make payments in
accordance with the provisions of NRS 616B.587 and
616B.590. The Administrator shall administer the
Account.

2. All assessments, penalties, bonds,
securities and all other properties received, collected or acquired by the
Administrator for the Subsequent Injury Account for Private Carriers must be
delivered to the custody of the State Treasurer.

3. All money and securities in the Account
must be held by the State Treasurer as custodian thereof to be used solely for
workers’ compensation for employees whose employers are insured by private
carriers.

4. The State Treasurer may disburse money
from the Account only upon written order of the State Controller.

5. The State Treasurer shall invest money
of the Account in the same manner and in the same securities in which the State
Treasurer is authorized to invest State General Funds which are in the custody
of the State Treasurer. Income realized from the investment of the assets of the
Account must be credited to the Account.

6. The Administrator shall adopt
regulations for the establishment and administration of assessment rates,
payments and penalties. Assessment rates must reflect the relative hazard of
the employments covered by private carriers, must result in an equitable
distribution of costs among the private carriers and must be based upon
expected annual premiums to be received.

7. The Commissioner shall assign an
actuary to review the establishment of assessment rates. The rates must be
filed with the Commissioner 30 days before their effective date. Any private
carrier who wishes to appeal the rate so filed must do so pursuant to NRS 679B.310.

NRS 616B.587Payment of cost of additional compensation resulting from
subsequent injury of employee of employer insured by private carrier.Except as otherwise provided in NRS 616B.590:

1. If an employee of an employer who is
insured by a private carrier has a permanent physical impairment from any cause
or origin and incurs a subsequent disability by injury arising out of and in
the course of his or her employment which entitles the employee to compensation
for disability that is substantially greater by reason of the combined effects
of the preexisting impairment and the subsequent injury than that which would
have resulted from the subsequent injury alone, the compensation due must be charged
to the Subsequent Injury Account for Private Carriers in accordance with
regulations adopted by the Administrator.

2. If the subsequent injury of such an
employee results in his or her death and it is determined that the death would
not have occurred except for the preexisting permanent physical impairment, the
compensation due must be charged to the Subsequent Injury Account for Private
Carriers in accordance with regulations adopted by the Administrator.

3. As used in this section, “permanent physical
impairment” means any permanent condition, whether congenital or caused by
injury or disease, of such seriousness as to constitute a hindrance or obstacle
to obtaining employment or to obtaining reemployment if the employee is
unemployed. For the purposes of this section, a condition is not a “permanent
physical impairment” unless it would support a rating of permanent impairment
of 6 percent or more of the whole person if evaluated according to the American
Medical Association’s Guides to the Evaluation of Permanent Impairment
as adopted and supplemented by the Division pursuant to NRS 616C.110.

4. To qualify under this section for
reimbursement from the Subsequent Injury Account for Private Carriers, the
private carrier must establish by written records that the employer had
knowledge of the “permanent physical impairment” at the time the employee was
hired or that the employee was retained in employment after the employer acquired
such knowledge.

5. A private carrier must submit to the
Administrator a claim for reimbursement from the Subsequent Injury Account for
Private Carriers.

6. The Administrator shall adopt
regulations establishing procedures for submitting claims against the
Subsequent Injury Account for Private Carriers. The Administrator shall notify
the private carrier of his or her decision on such a claim within 120 days
after the claim is received.

7. An appeal of any decision made
concerning a claim against the Subsequent Injury Account for Private Carriers
must be submitted directly to the appeals officer. The appeals officer shall
hear such an appeal within 45 days after the appeal is submitted to the appeals
officer.

1. A private carrier who pays compensation
due to an employee who has a permanent physical impairment from any cause or
origin and incurs a subsequent disability by injury arising out of and in the
course of his or her employment which entitles the employee to compensation for
disability that is substantially greater by reason of the combined effects of
the preexisting impairment and the subsequent injury than that which would have
resulted from the subsequent injury alone is entitled to be reimbursed from the
Subsequent Injury Account for Private Carriers if:

(a) The employee knowingly made a false
representation as to his or her physical condition at the time the employee was
hired by the employer insured by a private carrier;

(b) The employer relied upon the false
representation and this reliance formed a substantial basis of the employment;
and

(c) A causal connection existed between the false
representation and the subsequent disability.

Ê If the subsequent
injury of the employee results in his or her death and it is determined that
the death would not have occurred except for the preexisting permanent physical
impairment, any compensation paid is entitled to be reimbursed from the
Subsequent Injury Account for Private Carriers.

2. A private carrier shall notify the
Administrator of any possible claim against the Subsequent Injury Account for
Private Carriers pursuant to this section no later than 60 days after the date
of the subsequent injury or the date the employer learns of the employee’s
false representation, whichever is later.

NRS 616B.600Exemption of employer and employee temporarily within State;
exception; effect of employee working in another state where coverage required.

1. Except as limited in subsection 3, any
employee who has been hired outside of this State and his or her employer are
exempted from the provisions of chapters 616A
to 616D, inclusive, and chapter 617 of NRS while the employee is temporarily
within this State doing work for the employer if the employer has furnished
industrial insurance pursuant to the Nevada Industrial Insurance Act or similar
laws of a state other than Nevada so as to cover the employee’s employment
while in this State if:

(a) The extraterritorial provisions of chapters 616A to 616D, inclusive, and chapter 617 of NRS are recognized in the other state;
and

(b) Employers and employees who are covered in
this State are likewise exempted from the application of the Nevada Industrial
Insurance Act or similar laws of the other state.

Ê The benefits
provided in the Nevada Industrial Insurance Act or similar laws of the other
state are the exclusive remedy against the employer for any injury, whether
resulting in death or not, received by the employee while working for the
employer in this State.

2. A certificate from the Administrator or
similar officer of another state certifying that the employer of the other
state is insured therein and has provided extraterritorial coverage insuring
employees of the employer while working within this State is prima facie
evidence that the employer carried the industrial insurance.

3. The exemption provided for in this
section does not apply to the employees of a contractor, as defined in NRS 624.020, operating within the scope of
the license of the contractor.

4. An employer is not required to maintain
coverage for industrial insurance in this State for an employee who has been
hired or is regularly employed in this State, but who is performing work
exclusively in another state, if the other state requires the employer to
provide coverage for the employee in the other state. If the employee receives
personal injury by accident arising out of and in the course of his or her
employment, any claim for compensation must be filed in the state in which the
accident occurred, and such compensation is the exclusive remedy of the
employee or the dependents of the employee. This subsection does not prevent an
employer from maintaining coverage for the employee pursuant to the provisions
of chapters 616A to 616D, inclusive, and chapter 617 of NRS.

NRS 616B.606Real estate brokers and salespersons not employers under certain
circumstances.Any person licensed
pursuant to the provisions of chapter 645 of
NRS who engages an independent contractor to maintain or repair property on
behalf of an individual property owner or an association of property owners is
not a statutory employer for the purposes of chapters
616A to 616D, inclusive, of NRS.

(a) A contract of employment, insurance, relief
benefit, indemnity, or any other device, does not modify, change or waive any
liability created by chapters 616A to 616D, inclusive, of NRS.

(b) A contract of employment, insurance, relief
benefit, indemnity, or any other device, having for its purpose the waiver or
modification of the terms or liability created by chapters 616A to 616D, inclusive, of NRS is void.

2. Nothing in this section prevents an
owner or lessor of real property from requiring an employer who is leasing the
real property from agreeing to insure the owner or lessor of the property
against any liability for repair or maintenance of the premises.

1. Every employer within the provisions of
chapters 616A to 616D, inclusive, or 617 of NRS, and those employers who accept the terms
of those chapters and are governed by their provisions, shall provide and
secure compensation according to the terms, conditions and provisions of those
chapters for any personal injuries by accident sustained by an employee arising
out of and in the course of the employment.

2. A contractor or subcontractor shall be
deemed to have provided and secured compensation for his or her employees as
required pursuant to subsection 1 to the extent that those employees are
covered by a consolidated insurance program.

3. Travel for which an employee receives
wages shall, for the purposes of chapters 616A
to 616D, inclusive, of NRS, be deemed in
the course of employment.

4. In such cases the employer or any
insurer of the employer is relieved from other liability for recovery of
damages or other compensation for those personal injuries unless otherwise
provided by the terms of chapters 616A to 616D, inclusive, of NRS.

1. An employer who is certified as a
self-insured employer directly assumes the responsibility for providing
compensation due his or her employees and their beneficiaries under chapters 616A to 617,
inclusive, of NRS.

2. A self-insured employer is not required
to pay the premiums required of other employers pursuant to chapters 616A to 617,
inclusive, of NRS but is relieved from other liability for personal injury to
the same extent as are other employers.

3. The claims of employees and their
beneficiaries resulting from injuries while in the employment of self-insured
employers must be handled in the manner provided by chapters 616A to 616D, inclusive, of NRS, and the self-insured
employer is subject to the regulations of the Division with respect thereto.

4. The security deposited pursuant to NRS 616B.300 does not relieve that employer from
responsibility for the administration of claims and payment of compensation
under chapters 616A to 616D, inclusive, of NRS.

NRS 616B.618Applicability to State, political subdivisions and their
contractors.Except as otherwise
provided in subsection 4 of NRS 616B.627, when the
State or a county, city, school district, metropolitan police department, or
other political subdivision, or a contractor under such a governmental entity
is the employer, the provisions of chapters
616A to 616D, inclusive, of NRS for the
payment of compensation and the amount thereof for any injury sustained by an
employee are conclusive, compulsory and obligatory upon both employer and
employee without regard to the number of persons in the service of any such
employer.

NRS 616B.621Applicability to trainees of Rehabilitation Division of
Department of Employment, Training and Rehabilitation.

1. In case of injury, coverage by
industrial insurance must be provided for trainees while enrolled in a
rehabilitation facility operated by the Rehabilitation Division of the
Department of Employment, Training and Rehabilitation, related to evaluation,
treatment, training, surgical apparatuses or medications.

2. The Director of the Department of
Employment, Training and Rehabilitation shall make payments to the insurer on
all trainees enrolled in a rehabilitation facility operated by the
Rehabilitation Division of the Department of Employment, Training and
Rehabilitation in this State at the rate approved by the Commissioner and based
on a wage of $200 per month per trainee.

3. Payments must be made from the Account
for Rehabilitation Facilities of the Rehabilitation Division of the Department
of Employment, Training and Rehabilitation.

NRS 616B.624Applicability to officers of quasi-public, private and nonprofit
corporations and managers of limited-liability companies; rejection of coverage
by certain officers and managers.

1. If a quasi-public or private
corporation or a limited-liability company is required to be insured pursuant
to chapters 616A to 616D, inclusive, of NRS, an officer of the
corporation or a manager of the company who:

(a) Receives pay for services performed as an
officer, manager or employee of the corporation or company shall be deemed for
the purposes of those chapters to receive a minimum pay of $6,000 per policy
year and a maximum pay of $36,000 per policy year.

(b) Does not receive pay for services performed
as an officer, manager or employee of the corporation or company shall be
deemed for the purposes of those chapters to receive a minimum pay of $500 per
month or $6,000 per policy year.

2. An officer or manager who does not
receive pay for services performed as an officer, manager or employee of the
corporation or company may elect to reject coverage for himself or herself by
filing written notice thereof with the corporation or company and the insurer.
The rejection is effective upon receipt of the notice by the insurer.

3. An officer or manager of such a
corporation or company who:

(a) Owns the corporation or company; and

(b) Receives pay for the services performed,

Ê may elect to
reject coverage for himself or herself by filing written notice thereof with
the insurer. The rejection is effective upon receipt of the notice by the
insurer.

4. An officer or manager who has rejected
coverage may rescind that rejection by filing written notice thereof with the
corporation or company and the insurer. The rescission is effective upon
receipt of the notice by the insurer. Except as otherwise provided in
subsection 3, if an officer or manager who has rejected coverage receives pay
for services performed as an officer, manager or employee of the corporation or
company, the officer or manager shall be deemed to have rescinded that
rejection.

5. A nonprofit corporation whose officers
do not receive pay for services performed as officers or employees of the
corporation may elect to reject coverage for its current officers and all
future officers who do not receive such pay by filing written notice thereof
with the corporation and the insurer. The rejection is effective upon receipt
of the notice by the insurer.

6. A nonprofit corporation which has
rejected coverage for its officers who do not receive pay for services
performed as officers or employees of the corporation may rescind that
rejection by filing written notice thereof with the corporation and the
insurer. The rescission is effective upon receipt of the notice by the insurer.
If an officer of a nonprofit corporation which has rejected coverage receives
pay for services performed as an officer or employee of the corporation, the
corporation shall be deemed to have rescinded that rejection.

NRS 616B.627Contractor with State or political subdivision: Submission of
certificate of compliance; coverage pursuant to contract; sole proprietor who
does not use employees.

1. Except as otherwise provided in this
section, before any person, firm or corporation commences work under any
contract with the State or any political subdivision thereof, or a metropolitan
police department, the contractor shall furnish to the state agency, political
subdivision or metropolitan police department having charge of the letting of
the contract a certificate of the insurer certifying that the contractor has
complied with the provisions of chapters 616A
to 616D, inclusive, of NRS. A state agency,
political subdivision or metropolitan police department may furnish coverage
for industrial insurance for a contractor as specified in the contract.

2. In lieu of furnishing a certificate of
an insurer pursuant to the provisions of subsection 1, a sole proprietor who
does not use the services of his or her employees, if any, in the performance
of a contract with the State or any political subdivision thereof, or a
metropolitan police department, may submit to a state agency, political
subdivision or metropolitan police department specified in subsection 1 an
affidavit indicating that the sole proprietor:

(a) In accordance with the provisions of NRS 616B.659, has not elected to be included within
the terms, conditions and provisions of chapters
616A to 616D, inclusive, of NRS; and

(b) Is otherwise in compliance with those terms,
conditions and provisions.

3. If a sole proprietor submits an
affidavit specified in subsection 2 to a state agency, political subdivision or
metropolitan police department specified in subsection 1, the state agency,
political subdivision or metropolitan police department shall not require the
sole proprietor to obtain industrial insurance for himself or herself during
any period in which the sole proprietor performs work under the contract for
which he or she submitted the affidavit.

4. A state agency, political subdivision
or metropolitan police department that lets a contract to a sole proprietor in
accordance with this section:

(a) Must not, for any purpose, be considered to
be the employer of the sole proprietor or the employees of the sole proprietor,
if any; and

(b) Is not liable as a principal contractor to
the sole proprietor or the employees of the sole proprietor, if any, for any
compensation or other damages as a result of an industrial injury or
occupational disease incurred in the performance of the contract.

NRS 616B.630Notification of State Contractors’ Board and Administrator if
contractor no longer provides industrial insurance.

1. The Administrator shall, not later than
10 days after receiving notice from the advisory organization that a
contractor’s coverage has lapsed, notify the State Contractors’ Board of that
fact.

2. The Commissioner shall notify the
Administrator and the State Contractors’ Board within 10 days after a
contractor’s certificate of qualification as a self-insured employer is
cancelled or withdrawn or the contractor is no longer a member of an
association of self-insured public or private employers.

NRS 616B.633Applicability to all employers who employ at least one employee.Where an employer has in his or her service
any employee under a contract of hire, except as otherwise expressly provided
in chapters 616A to 616D, inclusive, of NRS, the terms, conditions
and provisions of those chapters are conclusive, compulsory and obligatory upon
both employer and employee.

1. If any employer within the provisions
of NRS 616B.633 fails to provide and secure
compensation under chapters 616A to 616D, inclusive, of NRS, any injured employee
or the dependents of the employee may bring an action at law against the
employer for damages as if those chapters did not apply.

2. The injured employee or the dependents
of the employee may in such an action attach the property of the employer at
any time upon or after the institution of the action, in an amount fixed by the
court, to secure the payment of any judgment which is ultimately obtained. The
provisions of chapters 31 and 71 of NRS govern the issuance of, and
proceedings upon, the attachment.

3. In such an action, the employer does
not escape liability for personal injury or accident sustained by the employee,
when the injury sustained arises out of and in the course of the employment,
because:

(a) The employee assumed the risks:

(1) Inherent or incidental to, or arising
out of his or her employment;

(2) Arising from the failure of the
employer to provide and maintain a reasonably safe place to work; or

(3) Arising from the failure of the
employer to furnish reasonably safe tools, motor vehicles or appliances.

(d) The employee was negligent, unless it appears
that such negligence was willful and with intent to cause injury or the injured
party was intoxicated.

Ê In such
cases it is presumed that the injury to the employee was the result of the
negligence of the employer and that such negligence was the proximate cause of
the injury, and the burden of proof rests upon the employer to rebut the
presumption of negligence.

NRS 616B.639Limitation of liability of principal contractor for industrial
injury to independent contractor or employee of independent contractor.

1. A principal contractor is not liable
for the payment of compensation for any industrial injury to any independent
contractor or any employee of an independent contractor if:

(a) The contract between the principal contractor
and the independent contractor is in writing and the contract provides that the
independent contractor agrees to maintain coverage for industrial insurance
pursuant to chapters 616A to 616D, inclusive, of NRS;

(b) Proof of such coverage is provided to the
principal contractor;

(c) The principal contractor is not engaged in
any construction project; and

(d) The independent contractor is not in the same
trade, business, profession or occupation as the principal contractor.

2. The Administrator may adopt such
regulations as are necessary to carry out the provisions of this section.

(Added to NRS by 1991, 2392)—(Substituted
in revision for NRS 616.286)

NRS 616B.642Limitation on liability of owner of property who is not acting
as principal contractor.An owner
of property who is not acting as a principal contractor may not be held liable
for any payment, in excess of any remaining money retained by the owner to
assure payments under chapters 616A to 616D, inclusive, of NRS, of costs relating to
industrial insurance required to be paid by the owner’s principal contractor or
any subcontractor, should the principal contractor or subcontractor default or
otherwise be unable to pay for the required insurance.

NRS 616B.645Determination of obligation of principal contractor or owner of
property: Preliminary statement of coverage; issuance or denial of final
certificate of coverage.

1. To determine his or her obligation to
pay premiums for industrial insurance on behalf of his or her subcontractors
and independent contractors and their employees, a principal contractor or
owner of property acting as a principal contractor may request the appropriate
insurer to:

(a) Provide the principal contractor or owner
with a statement certifying whether:

(1) Each of the subcontractors and
independent contractors working in the principal contractor’s or owner’s
project is insured; and

(2) Each sole proprietor who is a
subcontractor or independent contractor has elected coverage for himself or
herself pursuant to chapters 616A to 617, inclusive, of NRS.

(b) During the course of the project, notify the
principal contractor or owner whenever any of the subcontractors or independent
contractors fail to pay premiums or otherwise maintain industrial insurance.

2. Upon completion of the project, the
principal contractor or owner may request the insurer to certify that each
subcontractor or independent contractor who was previously reported by the insurer
as having coverage for industrial insurance has maintained it by paying all
premiums due throughout the entire course of the project. The insurer shall,
within 60 days after receiving such a request, issue:

(a) A final certificate which states that each
such subcontractor and independent contractor has paid in full all premiums due
for the project and that the principal contractor or owner is relieved of all
liability for payment of any additional premiums related to the particular
project; or

(b) A letter denying the issuance of a final
certificate related to the project. Such a letter may be issued if a
subcontractor or independent contractor:

(1) Is delinquent in the payment of
premiums due on the project;

(2) Has left the State;

(3) Is uncooperative in a required audit
of his or her records;

(4) Is principally located out of State
and an audit is required;

(5) Is delinquent in submitting his or her
records relating to his or her payroll;

(6) Has closed his or her account with the
insurer and premiums are due;

(7) Has failed to submit required
information to the insurer;

(8) Is protesting the results of a
required audit;

(9) Elected not to insure himself or
herself; or

(10) Has committed any other action which,
in the opinion of the insurer, may result in his or her failure to pay all
premiums due.

3. If the insurer does not issue a final
certificate or letter denying the issuance of the certificate within 60 days
after receiving a request therefor, a final certificate shall be deemed to have
been issued.

1. Where the employer, as provided in chapters 616A to 616D, inclusive, of NRS, has given notice of
an election to accept the terms of those chapters, and the employee has not
given notice of an election to reject the terms of those chapters, the employer
shall provide and secure, and the employee shall accept, compensation in the
manner provided in those chapters for all personal injuries sustained arising
out of and in the course of the employment.

2. Every employer electing to be governed
by the provisions of chapters 616A to 616D, inclusive, of NRS, before becoming
entitled to receive the benefits of those chapters, must comply with all
conditions and provisions of those chapters during the period of such election.

3. Failure on the part of any employer to
provide industrial insurance as required by the provisions of chapters 616A to 616D, inclusive, of NRS operates as a
rejection of the terms of those chapters. If an employer rejects those
chapters, or any of their terms, the employer shall post a notice of rejection
of the terms of those chapters upon the employer’s premises in a conspicuous
place. The employer at all times shall maintain the notice or notices so
provided for the information of his or her employees.

1. A lessee engaged in either mining or
operating a reduction plant whose employer is within the provisions of chapters 616A to 616D, inclusive, of NRS, must be reported by
the employer separately from persons employed at a daily wage, and the report
must describe briefly:

(a) The agreement under which the work is to be
performed;

(b) The aggregate number of shifts worked during
the preceding month; and

(c) The total amount earned by lessees, computed
on the average daily wages of workers engaged in like work in the same
locality.

Ê Otherwise
the payroll reports and premium payments on earnings of lessees described in
this section are governed by the requirements of chapters
616A to 616D, inclusive, of NRS
regarding employees engaged at a regular wage.

2. If such a lessee files with the
Administrator and the insurer an acceptance of the provisions of chapters 616A to 616D, inclusive, of NRS and, if applicable,
pays the premiums in advance upon the estimated earnings of the lessee and any
workers the lessee may employ, the lessor is relieved of this obligation.

1. An employer in this State having in his
or her employment any employee excluded from the benefits of chapters 616A to 616D, inclusive, of NRS pursuant to NRS 616A.110 may elect to cover such
employees under the provisions of those chapters in the manner provided in this
section.

2. The election on the part of the
employer must be made by filing with the Administrator and the insurer a
written statement that the employer accepts the provisions of chapters 616A to 616D, inclusive, of NRS which, when filed,
operates to subject the employer to the provisions of those chapters until the
employer files with the Administrator and the insurer a notice in writing that
the employer withdraws the election.

3. An employee in the service of any such
employer shall be deemed to have accepted, and is subject to, the provisions of
chapters 616A to 616D, inclusive, of NRS if, at the time of the
accident for which compensation is claimed:

(a) The employer charged with liability is
subject to the provisions of those chapters, whether or not the employee has
actual notice thereof; and

(b) The employee has not given to his or her
employer and to the Administrator and the insurer notice in writing that the
employee elects to reject the provisions of those chapters.

4. An employee who has rejected the
provisions of chapters 616A to 616D, inclusive, of NRS may at any time thereafter
elect to waive the rejection by giving notice in writing to his or her employer
and to the Administrator and the insurer which becomes effective when filed
with the Administrator and the insurer.

1. A sole proprietor may elect to be
included within the terms, conditions and provisions of chapters 616A to 616D, inclusive, of NRS to secure for himself
or herself compensation equivalent to that to which an employee is entitled for
any accidental injury sustained by the sole proprietor which arises out of and
in the course of his or her self-employment by filing a written notice of
election with the Administrator and a private carrier.

2. A private carrier may require a sole
proprietor who elects to accept the terms, conditions and provisions of chapters 616A to 616D, inclusive, of NRS to submit to a
physical examination before his or her coverage commences. If a private carrier
requires such a physical examination, the private carrier shall prescribe the
scope of the examination and shall consider it for rating purposes. The cost of
the physical examination must be paid by the sole proprietor.

3. A sole proprietor who elects to submit
to the provisions of chapters 616A to 616D, inclusive, of NRS shall pay to the
private carrier premiums in such manner and amounts as may be prescribed by the
regulations of the Commissioner.

4. If a sole proprietor fails to pay all
premiums required by the regulations of the Commissioner, the failure operates
as a rejection of chapters 616A to 616D, inclusive, of NRS.

5. A sole proprietor who elects to be
included pursuant to the provisions of chapters
616A to 616D, inclusive, of NRS remains
subject to all terms, conditions and provisions of those chapters and all
regulations of the Commissioner until the sole proprietor files written notice
with the Administrator and the private carrier that the sole proprietor
withdraws his or her election.

6. For the purposes of chapters 616A to 616D, inclusive, of NRS, a sole proprietor
shall be deemed to be receiving a wage of $300 per month unless, at least 90
days before any injury for which the sole proprietor requests coverage, the
sole proprietor files written notice with the Administrator and the private
carrier that he or she elects to pay an additional amount of premiums for
additional coverage. If the private carrier receives the additional premiums it
requires for such additional coverage, the sole proprietor shall be deemed to
be receiving a wage of $1,800 per month.

NRS 616B.662Rejection of coverage by employer; relief from payment of
premiums.An employer having come
under chapters 616A to 616D, inclusive, or chapter 617 of NRS who thereafter elects to reject the
terms, conditions and provisions of those chapters is not relieved from the
payment of premiums to the insurer before the time the employer’s notice of
rejection becomes effective if any are due. The premiums may be recovered in an
action at law.

1. “Applicant” means a person seeking a
certificate of registration pursuant to NRS 616B.670
to 616B.697, inclusive, to operate an employee
leasing company.

2. “Client company” means a company which
leases employees, for a fee, from an employee leasing company pursuant to a
written or oral agreement.

3. “Employee leasing company” means a
company which, pursuant to a written or oral agreement:

(a) Places any of the regular, full-time
employees of a client company on its payroll and, for a fee, leases them to the
client company on a regular basis without any limitation on the duration of
their employment; or

(b) Leases to a client company:

(1) Five or more part-time or full-time
employees; or

(2) Ten percent or more of the total
number of employees within a classification of risk established by the
Commissioner.

1. A person shall not operate an employee
leasing company in this State unless the person has complied with the
provisions of NRS 616B.670 to 616B.697, inclusive. The Administrator shall issue a
certificate of registration to each applicant who complies with the provisions
of NRS 616B.670 to 616B.697,
inclusive.

2. Any person who violates the provisions
of subsection 1 is guilty of a misdemeanor.

3. Each certificate of registration issued
by the Administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 1 year after it is
issued unless renewed before that date.

NRS 616B.676Written application for issuance or renewal of certificate of
registration must be on approved form.An
applicant for the issuance or renewal of a certificate of registration must
submit to the Administrator a written application upon a form provided by the
Administrator.

NRS 616B.679Contents of application; fee; Administrator to be notified of
certain changes in information about applicant; power of Administrator to
revoke certificate of registration; financial statements.

1. Each application must include:

(a) The applicant’s name and title of his or her
position with the employee leasing company.

(b) The applicant’s age, place of birth and
social security number.

(c) The applicant’s address.

(d) The business address of the employee leasing
company.

(e) The business address of the registered agent
of the employee leasing company, if the applicant is not the registered agent.

(f) If the applicant is a:

(1) Partnership, the name of the
partnership and the name, address, age, social security number and title of
each partner.

(2) Corporation, the name of the
corporation and the name, address, age, social security number and title of
each officer of the corporation.

(2) The payment of any premiums for
industrial insurance required by chapters 616A
to 617, inclusive, of NRS.

(3) The payment of contributions or
payments in lieu of contributions required by chapter
612 of NRS.

(4) Insurance coverage for any benefit
plan from an insurer authorized pursuant to title 57 of NRS that is offered by
the employee leasing company to its employees.

(h) A financial statement of the applicant
setting forth the financial condition of the employee leasing company. Except
as otherwise provided in subsection 5, the financial statement must include,
without limitation:

(1) For an application for issuance of a
certificate of registration, the most recent audited financial statement of the
applicant, which must have been completed not more than 13 months before the
date of application; or

(2) For an application for renewal of a
certificate of registration, an audited financial statement which must have
been completed not more than 180 days after the end of the applicant’s fiscal
year.

(i) A registration or renewal fee of $500.

(j) Any other information the Administrator
requires.

2. Each application must be notarized and
signed under penalty of perjury:

(a) If the applicant is a sole proprietorship, by
the sole proprietor.

(b) If the applicant is a partnership, by each
partner.

(c) If the applicant is a corporation, by each
officer of the corporation.

3. An applicant shall submit to the
Administrator any change in the information required by this section within 30
days after the change occurs. The Administrator may revoke the certificate of
registration of an employee leasing company which fails to comply with the
provisions of NRS 616B.670 to 616B.697, inclusive.

4. If an insurer cancels an employee
leasing company’s policy, the insurer shall immediately notify the
Administrator in writing. The notice must comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and must be served
personally on or sent by first-class mail or electronic transmission to the
Administrator.

5. A financial statement submitted with an
application pursuant to this section must be prepared in accordance with
generally accepted accounting principles, must be audited by an independent
certified public accountant licensed to practice in the jurisdiction in which
the accountant is located and must be without qualification as to the status of
the employee leasing company as a going concern. An employee leasing company
that has not had sufficient operating history to have an audited financial
statement based upon at least 12 months of operating history must present
financial statements reviewed by a certified public accountant covering its
entire operating history. The financial statements must be prepared not more
than 13 months before the submission of an application and must:

(a) Indicate that the applicant has positive
working capital, as defined by generally accepted accounting principles, for
the period covered by the financial statements; or

(b) Be accompanied by a bond, irrevocable letter
of credit or securities with a minimum market value equaling the maximum
deficiency in working capital for the period covered by the financial
statements plus $100,000. The bond, irrevocable letter of credit or securities
must be held by a depository institution designated by the Administrator to
secure payment by the applicant of all taxes, wages, benefits or other
entitlements payable by the applicant.

NRS 616B.685Separate payroll records required upon operation of employee
leasing company and temporary employment service; prohibition on maintaining
policy of workers’ compensation insurance for both employee leasing company and
temporary employment service.If a
person operates an employee leasing company and a temporary employment service
in this State, the person:

1. Shall maintain separate payroll records
for the company and the service. The records must be maintained in this State.

2. Shall not maintain a policy of workers’
compensation insurance which covers both employees of the employee leasing
company and employees of the temporary employment service.

NRS 616B.688Written agreement regarding employment relationship with leased
employees.The employment
relationship with workers provided by an employee leasing company to a client
company must be established by written agreement between the employee leasing
company and the client company. The employee leasing company shall give written
notice of the employment relationship to each leased employee assigned to
perform services for the client company.

(Added to NRS by 1993, 2420)—(Substituted
in revision for NRS 616.2544)

1. An employee leasing company which
complies with the provisions of NRS 616B.670 to 616B.697, inclusive, shall be deemed to be the
employer of the employees it leases to a client company. The provisions of this
subsection apply only for the purposes of chapters
612 and 616A to 617, inclusive, of NRS.

2. An employee leasing company shall be
deemed to be an employer of its leased employees for the purposes of offering,
sponsoring and maintaining any benefit plans. The provisions of this subsection
do not affect the employer-employee relationship that exists between a leased
employee and a client company.

3. An employee leasing company shall not
offer, sponsor or maintain for its leased employees any self-funded insurance
program. An employee leasing company shall not act as a self-insured employer
or be a member of an association of self-insured public or private employers
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS or title 57 of NRS.

4. If an employee leasing company fails
to:

(a) Pay any contributions, premiums, forfeits or
interest due; or

(b) Submit any reports or other information
required,

Ê pursuant to
this chapter or chapter 612, 616A, 616C,
616D or 617
of NRS, the client company is jointly and severally liable for the
contributions, premiums, forfeits or interest attributable to the wages of the
employees leased to it by the employee leasing company.

1. An employee leasing company may satisfy
its obligation to provide coverage for workers’ compensation for the employees
that the employee leasing company leases to each client company by:

(a) Confirming that the client company has
obtained a policy of workers’ compensation insurance directly from an insurer,
and maintains that policy, which covers all of the employees of the client
company, including, without limitation, the employees leased from the employee
leasing company, subject to the same requirements and conditions as if the
client company were the sole employer of the leased employees for the purpose
of providing coverage for workers’ compensation;

(b) Confirming that the client company is a
member of an association of self-insured employers which is certified by the
Commissioner and which has assumed responsibility, and maintains
responsibility, for covering all of the employees of the client company,
including, without limitation, the employees leased from the employee leasing
company, subject to the same requirements and conditions as if the client
company were the sole employer of the leased employees for the purpose of
providing coverage for workers’ compensation;

(c) Confirming that the client company is
certified by the Commissioner as a self-insured employer which self-insures all
of the employees of the client company, including, without limitation, the
employees leased from the employee leasing company, subject to the same
requirements and conditions as if the client company were the sole employer of the
leased employees for the purpose of providing coverage for workers’
compensation;

(d) Obtaining a policy of workers’ compensation
insurance directly from an insurer on a multiple coordinated policy basis, and
maintaining that policy, which covers all of the employees leased to the client
company or all of the employees leased to the client company and other client
companies affiliated with the client company such that:

(1) The policy covers the liability of
both the employee leasing company and the client company or companies for payments
required by chapters 616A to 616D, inclusive, or chapter 617 of NRS;

(2) A separate policy is issued to or on
behalf of each client company or group of affiliated client companies under the
multiple coordinated policy; and

(3) The employee leasing company controls
payments and communications related to the policy; or

(e) Obtaining a policy of workers’ compensation
insurance on a master policy basis directly from an insurer, and maintaining
that policy, which:

(1) Covers some or all of the employees of
the employee leasing company who are leased to one or more client companies;
and

(2) May cover all of the employees of the
employee leasing company who work directly for the employee leasing company and
are not leased to any client company.

2. With respect to a policy of workers’ compensation
insurance described in paragraph (a) of subsection 1:

(a) The policy may name the employee leasing
company as an additional insured; and

(b) If the employee leasing company is licensed
as a producer of insurance pursuant to NRS
683A.261 and is authorized by the insurer, the employee leasing company may
negotiate coverage, collect premiums on behalf of the insurer and otherwise act
as an intermediary with respect to the policy.

3. If an employee leasing company or a
client company maintains a policy of workers’ compensation insurance which
provides coverage for leased employees, each insurer insuring leased employees
shall report to the Advisory Organization, as defined in NRS 686B.1752:

(a) Payroll and claims data for each client
company in a manner that identifies both the client company and the employee
leasing company; and

(b) The status of coverage with respect to each
client company in accordance with any applicable requirements regarding proof
of coverage.

4. If the services that an employee
leasing company offers to a client company do not include obtaining and
maintaining a policy of workers’ compensation insurance for the employees which
the employee leasing company will lease to the client company, the employee
leasing company shall:

(a) Before entering into an agreement with the
client company to provide services as an employee leasing company, provide
written notice to the client company that the client company will remain
responsible for providing coverage for workers’ compensation for all of the
employees of the client company, including, without limitation, the employees
leased from the employee leasing company; and

(b) In the written agreement with the client
company to provide services as an employee leasing company, clearly set forth
the responsibility of the client company to provide coverage for workers’
compensation for all of the employees of the client company, including, without
limitation, the employees leased from the employee leasing company.

5. If an employee leasing company offers
to provide coverage for workers’ compensation for the employees that the
employee leasing company leases to a client company in accordance with
paragraph (d) or (e) of subsection 1:

(a) The coverage for workers’ compensation must
not take effect until the client company executes the written agreement
required by NRS 616B.688 between the employee
leasing company and the client company; and

(b) The written agreement required by NRS 616B.688 between the employee leasing company and
the client company must:

(1) Explain that coverage for workers’
compensation does not take effect until the effective date designated by the
insurer in the policy of workers’ compensation insurance;

(2) Provide that, while the policy of workers’
compensation insurance is in force, the employee leasing company will pay all
premiums required by the policy, including, without limitation, any adjustments
or assessments, and will be entitled to any refunds of premiums;

(3) Set forth the procedures by which the
client company or the employee leasing company may terminate the agreement and
any fees or costs payable upon termination;

(4) Provide that, except as otherwise
provided by law, all services provided by the employee leasing company to the
client company will cease immediately on the effective date of any termination
of the agreement;

(5) Provide that the insurer from whom the
policy of workers’ compensation insurance is obtained by the employee leasing
company has the right to inspect the premises and records of the client
company;

(6) Provide that the loss experience of
the client company will continue to be reported in the name of the client
company to the Commissioner and will be available to subsequent insurers upon
request;

(7) Provide that the policy of workers’
compensation insurance covers only those employees acknowledged in writing by
the employee leasing company to be employees of the employee leasing company
who are being leased to the client company;

(8) Explain that the client company is
responsible at all times for providing coverage for workers’ compensation for
any employees of the client company who are not leased from the employee
leasing company; and

(9) Provide that the client company must
provide satisfactory evidence of the coverage required by subparagraph (8) to
the insurer from whom the policy of workers’ compensation insurance is obtained
by the employee leasing company.

6. Nothing in this section prohibits the
employees of an employee leasing company who are leased to one or more client
companies from being considered as a group for the purposes of any eligibility
for dividends, discounts on premiums, rating arrangements or options or
obtaining policies with large deductibles.

7. The exclusive remedy provided by NRS 616A.020 applies to the employee
leasing company, the client company and to all employees of the client company,
including, without limitation, the employees leased from the employee leasing
company, whether the employee leasing company or the client company provides
the coverage for workers’ compensation.

8. The Administrator and the Commissioner
may adopt regulations to carry out the provisions of this section.

1. The Administrator may adopt regulations
authorizing and setting forth qualifications for an assurance organization
selected by an employee leasing company to act on behalf of the employee
leasing company in complying with the requirements of NRS
616B.670 to 616B.697, inclusive, and any
regulations adopted pursuant thereto, including, without limitation, any
requirements regarding obtaining or renewing a certificate of registration.
Such an assurance organization must be independent of the employee leasing
company and approved by the Administrator.

2. Nothing in this section or any
regulations adopted pursuant thereto:

(a) Limits or otherwise affects the authority of
the Administrator to issue or revoke a certificate of registration of an
employee leasing company subject to the appeals process;

(b) Limits or otherwise affects the authority of
the Administrator to investigate compliance with or enforce any provision of NRS 616B.670 to 616B.697,
inclusive, and any regulations adopted pursuant thereto; or

(c) Requires an employee leasing company to
authorize an assurance organization to act on its behalf.

3. As used in this section, “assurance
organization” means a person who meets the qualifications set forth by the Administrator
pursuant to regulations adopted pursuant to subsection 1.

NRS 616B.697Action for damages for statutory violation.An action for damages caused by the failure of
an employee leasing company to comply with the provisions of NRS 616B.670 to 616B.697,
inclusive, may be brought against any person who is required to sign the
application for a certificate of registration for the employee leasing company.

(a) Establish and administer a consolidated
insurance program to provide industrial insurance coverage for employees of
contractors and subcontractors who are engaged in a construction project of which
the private company, public entity or utility is the owner or principal
contractor, if the estimated total cost of the construction project is equal to
or greater than the threshold amount established by the Commissioner pursuant
to subsection 3; and

(b) As a condition precedent to the award of a
contract to perform work on the construction project, require that contractors
and subcontractors who will be engaged in the construction of the project
participate in the consolidated insurance program.

2. If a private company, public entity or
utility:

(a) Establishes and administers a consolidated
insurance program; and

(b) Pursuant to the contract for the construction
of the project, owes a periodic payment to a contractor or subcontractor whose
employees are covered under the consolidated insurance program,

Ê the private
company, public entity or utility shall not withhold such a periodic payment on
the basis that the contractor or subcontractor has not signed an employer’s
report of industrial injury or occupational disease as required pursuant to NRS 616C.045.

3. The Commissioner shall establish the
threshold amount that the estimated total cost of a construction project must
be equal to or greater than before a consolidated insurance program may be
established and administered for that project pursuant to this section. The
base amount for the threshold must initially be $150,000,000 and thereafter
must be an amount equal to $150,000,000 as adjusted by the Commissioner on June
30 of each year to reflect the present value of that amount with respect to the
construction cost index.

4. As used in this section:

(a) “Construction cost index” means the
construction cost index published by the Engineering News-Record as a measure
of inflation.

(b) “Estimated total cost” means the estimated
cost to complete all parts of a construction project, including, without
limitation, the cost of:

(1) Designing the project;

(2) Acquiring the real property on which
the project will be constructed;

(3) Connecting the project to utilities;

(4) Excavating and carrying out
underground improvements for the project; and

(5) Acquiring equipment and furnishings
for the project.

Ê The term
does not include the cost of any fees or charges associated with acquiring the
money necessary to complete the project.

NRS 616B.712Industrial insurance for program; contract to provide insurance
to be filed and reviewed by Commissioner.

1. A private carrier who is authorized to
transact industrial insurance in this State may contract with a private company,
public entity or utility to provide industrial insurance coverage for a
consolidated insurance program.

2. A private company, public entity or
utility that enters into a contract with a private carrier for the provision of
industrial insurance coverage for a consolidated insurance program shall file a
copy of the contract with the Commissioner at least 60 days before the date on
which the construction project is scheduled to begin.

3. The Commissioner shall, within 60 days
after receiving a copy of a contract pursuant to subsection 2, review and
approve or disapprove the contract. If the Commissioner does not disapprove the
contract within 60 days after receiving it, the contract shall be deemed
approved.

NRS 616B.720Contents of contract to provide insurance for program.A contract for the provision of industrial
insurance that is authorized pursuant to NRS 616B.712
must include, without limitation:

1. Provisions that require compliance with
each of the requirements relating to safety and the administration of claims
for industrial insurance at the site of the construction project that are set
forth in NRS 616B.725 and 616B.727;

2. The names and qualifications of the
persons appointed to oversee issues of safety and the administration of claims
for industrial insurance at the site of the construction project pursuant to NRS 616B.725 and 616B.727;

3. The terms and conditions pursuant to
which the contract provides industrial insurance coverage. The terms and
conditions must include, without limitation:

(a) A definition of the site of the construction
project that:

(1) Delineates clearly the area within
which coverage is provided; and

(2) Is reasonably contiguous to the actual
physical site of the construction project; and

(b) A description of the scope and details of the
construction project and the duration of industrial insurance coverage that is
provided for the project;

4. A list in which the owner, principal
contractor, construction manager, contractors and subcontractors of the
construction project are set forth as named insureds; and

5. A provision setting forth the penalties
to which the owner, principal contractor, construction manager, contractors and
subcontractors of the construction project may be subject if such persons or
entities fail to comply with the provisions relating to safety and the
administration of claims for industrial insurance that are required pursuant to
NRS 616B.725 and 616B.727.

NRS 616B.722Liability of insurer for payment of compensation.A private carrier who contracts to provide
industrial insurance coverage for a consolidated insurance program pursuant to NRS 616B.712 is liable to pay each claim for
industrial insurance that is covered by the program, regardless of whether:

1. The claim is filed after the completion
of the construction project; or

2. Any party to the contract is not
transacting business within this State at the time the claim is filed.

1. A consolidated insurance program that a
private company, public entity or utility is authorized to establish and
administer pursuant to NRS 616B.710 must, in the
manner set forth in this section, provide for the safety of an employee of a
contractor or subcontractor who is engaged in the construction project when
such an employee works at the site of the construction project.

2. The owner or principal contractor of
the construction project shall develop and carry out a safety program that
includes, without limitation:

(a) The establishment of minimum standards of
safety to be observed during construction of the project;

(b) The holding of regular meetings to address
and discuss issues related to safety;

(c) Training of contractors and subcontractors
regarding issues and procedures related to safety;

(d) Regular inspections of the site of the
construction project to identify potential safety hazards and ensure that
minimum standards of safety are being observed;

(e) The notification of contractors and
subcontractors of special hazards that exist at the site of the construction
project, including advice on ways in which the contractors and subcontractors
can avoid those hazards; and

(f) The prompt investigation of any injuries that
take place at the site of the construction project which result in death or
serious bodily injury.

3. The owner or principal contractor of
the construction project shall hire or contract with two persons to serve as
the primary and alternate coordinators for safety for the construction project.
The primary and alternate coordinators for safety must:

(a) Possess credentials in the field of safety
that the Administrator determines to be adequate to prepare a person to act as
a coordinator for safety for a construction project, including, without
limitation, credentials issued by the:

(1) Board of Certified Safety
Professionals; or

(2) Insurance Institute of America; or

(b) Have at least 3 years of experience in
overseeing matters of occupational safety and health in the field of
construction that the Administrator determines to be adequate to prepare a
person to act as a coordinator for safety for a construction project.

4. The primary and alternate coordinators
for safety for the construction project:

(a) Must not serve as coordinators for safety for
another construction project that is covered by a different consolidated
insurance program;

(b) Shall oversee and enforce the safety program
established pursuant to subsection 2, including, without limitation, resolving
problems related to the operation of the safety program; and

(c) Shall ensure that the contractors, employers
and subcontractors who are engaged in the construction of the project
coordinate their efforts regarding issues of occupational safety and health to
create and maintain a safe and healthful workplace.

5. The alternate coordinator for safety
shall report to the primary coordinator for safety regarding activities that
take place at the site of the construction project when the primary coordinator
is absent.

6. The owner or principal contractor of
the construction project shall ensure that the primary or alternate coordinator
for safety for the construction project is physically present at the site of
the construction project whenever activity related to construction is taking
place at the site.

NRS 616B.727Administration of claims: Duties of administrator of claims;
duties of owner or principal contractor.

1. A consolidated insurance program that a
private company, public entity or utility is authorized to establish and
administer pursuant to NRS 616B.710 must, in the
manner set forth in this section, provide for the administration of claims for
industrial insurance for an employee of a contractor or subcontractor who is
engaged in the construction project when such an employee works at the site of
the construction project.

2. The owner or principal contractor of
the construction project shall hire or contract with a person to serve as the
administrator of claims for industrial insurance for the construction project.
Such a person must not serve as an administrator of claims for industrial
insurance for another construction project that is covered by a different
consolidated insurance program.

3. The administrator of claims for
industrial insurance for the construction project who is hired or with whom the
owner or principal contractor contracts pursuant to subsection 2 shall:

(a) Assist an employee who is covered under the
consolidated insurance program or, in the event of the employee’s death, one of
the dependents of the employee, in filing a written notice of injury or death
as required pursuant to NRS 616C.015
or a written notice of an occupational disease as required pursuant to NRS 617.342;

(b) Sign and file on behalf of a contractor or
subcontractor whose employees are covered under the consolidated insurance
program an employer’s report of industrial injury or occupational disease as
required pursuant to NRS 616C.045 or 617.354;

(c) Ensure that an employee who is covered under
the consolidated insurance program and who has been injured or who has incurred
an occupational disease while working on the construction project is directed
to a medical facility that will provide treatment to the employee under the
program;

(d) Handle all issues, to the extent reasonably
practicable, relating to claims for industrial insurance at the site of the
construction project; and

(e) Hire or contract such assistant
administrators as may be necessary to carry out the responsibilities of the
administrator of claims pursuant to this section.

4. The owner or principal contractor of
the construction project shall ensure that the administrator of claims for
industrial insurance for the construction project or an assistant administrator
is physically present at the site of the construction project whenever activity
related to construction is taking place at the site.

NRS 616B.730Coverage of employees who do not work at site of construction
project; separate policy required for certain employees who do not work at site
of construction project; reimbursement for cost of separate policy.

1. A consolidated insurance program must
not provide industrial insurance coverage, a comprehensive program of safety or
for the administration of claims for industrial insurance for an employee of a
contractor or subcontractor who is engaged in the construction of the project
that is covered by the consolidated insurance program at any time that such an
employee does not work at the site of the construction project.

2. A contractor or subcontractor who is
engaged in the construction of a project that is covered by a consolidated
insurance program shall maintain separate industrial insurance coverage for its
employees who:

(a) Are not assigned to participate in the
construction of the project; or

(b) Are assigned to participate in the
construction of the project but who do not work exclusively at the site of the
project.

3. The owner or principal contractor of a
construction project shall reimburse a contractor or subcontractor who bids
successfully on the construction project for the cost of providing separate
industrial insurance coverage for an employee if:

(a) The contractor or subcontractor set the
amount of his or her bid in a reasonable, good faith belief that the employee
would work exclusively at the site of the construction project and would
therefore be fully covered by the consolidated insurance program; and

(b) Because of changed circumstances not
reasonably foreseeable at the time the bid was submitted, the employee worked
in whole or in part at a location other than the site of the construction
project, requiring the contractor or subcontractor to obtain separate
industrial insurance coverage for that employee.

NRS 616B.732Determination of loss experience. If an
owner or principal contractor establishes and administers a consolidated insurance
program pursuant to NRS 616B.710, each employee of
a contractor or subcontractor who is covered under the consolidated insurance
program:

1. Is an employee of the contractor or subcontractor
for the purpose of determining the loss experience of the contractor or
subcontractor.

2. Shall not be deemed to be an employee
of the owner or principal contractor for the purpose of determining the loss
experience of the owner or principal contractor.

NRS 616B.735Notification and explanation to bidders required if program may
be established for construction project.With
respect to a construction project for which the owner intends to establish and
administer an owner-controlled insurance program or the principal contractor
intends to establish and administer a contractor-controlled insurance program,
the owner or principal contractor, as appropriate, shall:

1. In the notice or advertisement for bids
for the construction of the project, state:

(a) That the employees of contractors and
subcontractors who are engaged in the construction of the project will be
covered under a consolidated insurance program when such employees work at the
site of the project; and

(b) Whether such a program will be an
owner-controlled insurance program or a contractor-controlled insurance
program; and

2. Hold a pre-bid conference at which it
provides to potential contractors and subcontractors, without limitation, the
following information:

(a) A general explanation of the manner in which
a consolidated insurance program operates;

NRS 616B.737Regulations.The
Commissioner may adopt such regulations as the Commissioner determines are
necessary to carry out the provisions of NRS 616B.710
to 616B.737, inclusive, to the extent that the
authority granted pursuant to this section does not duplicate authority granted
to the Administrator.

1. The Appeals Panel for Industrial
Insurance is hereby created. The Appeals Panel consists of seven members who
are appointed by the Governor, in consultation with the Commissioner. From the
appropriate list of persons, if any, provided by the advisory organization
pursuant to subsection 2, the Governor, in consultation with the Commissioner,
shall appoint:

(a) An employee of the Division of Insurance of
the Department of Business and Industry;

(b) An agent who is:

(1) Licensed pursuant to chapter 683A of NRS and qualified pursuant to
regulations adopted by the Commissioner to take an application for, procure or
place on behalf of others, industrial insurance; and

(2) A member of a nationally recognized
association for the profession of insurance agents;

(c) Two representatives of the general public:

(1) One of which must be employed by, or
the proprietor of, a business which is a member of:

(I) A local chamber of commerce; or

(II) Another organization
representing the general business interests of a group of businesses located in
this State;

(2) Neither of which may be an independent
contractor to, or an employee or representative of, an insurance company,
insurance broker, insurance agent or insurance solicitor, a law firm, actuary
or a representative of a trade association that represents or supports the
interests specific to the trade of any such persons; and

(3) Both of which must be knowledgeable in
the field and business of industrial insurance in this State;

(d) Two representatives of private carriers; and

(e) A representative of the advisory organization
who administers appeals panels for grievances of employers in other states.

2. On or before June 1 of a year in which
the Governor is to appoint a member to the Appeals Panel, the advisory
organization shall compile lists of nominees for appointment pursuant to
subsection 1 and provide such lists to the Governor and the Commissioner. The
advisory organization shall compile three lists, each containing the names of
at least five persons who, in the opinion of the advisory organization, would
be appropriate members of the Appeals Panel as:

(a) The agent appointed pursuant to paragraph (b)
of subsection 1;

(b) The two representatives of the general public
appointed pursuant to paragraph (c) of subsection 1; and

(c) The two representatives of private carriers
appointed pursuant to paragraph (d) of subsection 1.

3. Within 30 days after such appointments
have been made, the Governor shall notify the advisory organization of the
names of each new member.

4. After the initial terms, members shall
serve terms of 2 years, except when appointed to fill unexpired terms.

5. A vacancy in the membership of the
Appeals Panel must be filled by the Governor, in consultation with the
Commissioner, in accordance with the provisions of subsections 1 and 2 for the
remainder of the unexpired term. The newly appointed member must have the same
qualifications as the vacating member, as specified in paragraph (a), (b), (c),
(d) or (e) of subsection 1, as appropriate.

1. Each member of the Appeals Panel is
entitled to receive, for the member’s attendance at the meetings of the Appeals
Panel, the per diem allowance and travel expenses provided for state officers
and employees generally.

2. Expenses of the members of the Appeals
Panel must be paid from assessments payable by each insurer pursuant to the
formula filed with and approved by the Commissioner pursuant to NRS 686B.17645.

3. As used in this section, “insurer” has
the meaning ascribed to it in NRS
686B.1759.

NRS 616B.772Filing of grievance; parties to hearing; authority to appeal
decision on hearing.

1. An employer, other than a self-insured
employer, who determines that circumstances specific to his or her case require
a review of the:

(a) Establishment of the employer’s modification
of premium based on experience;

(b) Classification of risk assigned for the
employer’s business; or

(c) Application of the supplementary rate
information to the employer,

Ê may file a
written grievance with the Appeals Panel.

2. The insurer of that employer and the
advisory organization may participate in a hearing on the grievance by
appearing and providing testimony or other evidence. If an insurer or the
advisory organization participates in the hearing, the insurer or the advisory
organization is a party to the hearing and may appeal, pursuant to the
provisions of NRS 616B.787, the decision made by
the Appeals Panel.

3. As used in this section “supplementary
rate information” has the meaning ascribed to it in NRS 686B.020.

1. Within 30 days after receipt of a
written grievance from an employer pursuant to NRS
616B.772 and not less than 10 days before the hearing on such grievance,
the Appeals Panel shall provide written notice to the employer, the employer’s
insurer and the advisory organization of the date and place of the hearing.

2. A decision on a grievance must be
issued pursuant to NRS 616B.785 within 30 days
after the hearing.

NRS 616B.780Hearings open to public; exception. A
hearing held pursuant to NRS 616B.775 must be open
to the public, unless the Appeals Panel will be considering proprietary
information of the employer or the insurer. As used in this section, the term
“proprietary information” means any information which, if disclosed to the
general public, may result in a competitive disadvantage to an insurer or
employer, including, without limitation:

1. Rules, criteria and standards for
underwriting policies that are applied by an insurer.

2. Plans or other documents concerning the
marketing or strategic planning of an insurer or employer.

3. Data, studies and reports concerning
the development of new products or services.

4. Data that identify the share of the
market of an insurer within each class of risk.

1. If a member of the Appeals Panel
determines that he or she has a personal interest or a conflict of interest,
directly or indirectly, with a party to a hearing or the subject matter of the
hearing, the Chair of the Appeals Panel shall appoint a substitute member for
that hearing who has the same qualifications, as specified in paragraph (a),
(b), (c), (d) or (e) of subsection 1 of NRS 616B.760
as the member who has the conflict of interest. If the Chair is the member with
the conflict of interest, another member of the Appeals Panel shall appoint the
substitute.

2. A conflict of interest may be waived
if, after full written disclosure of the facts raising such a conflict, all
parties to the appeal agree in writing to the hearing of the appeal by the
member. Such waiver must be filed with the Chair of the Appeals Panel before
the hearing. If the Chair is the member with the conflict of interest, the
waiver must be filed with the Commissioner.

3. The member of the Appeals Panel who
represents the advisory organization shall be deemed not to have a conflict of
interest with respect to the advisory organization if it is a party to a
hearing.

NRS 616B.785Issuance and delivery of decision; notification of right to
appeal.

1. Within 30 days after each hearing, the
Chair or a member of the Appeals Panel designated by the Chair shall prepare
and deliver personally or by mail to each party to the hearing and to the
Commissioner a written memorandum stating:

(a) The reasons for the decision of the Appeals
Panel concerning those parties; and

(b) The rights of any party to the hearing to
appeal pursuant to NRS 616B.787 and a brief
description of the procedure for making such an appeal.

Ê The votes of
each member of the Appeals Panel must not be recorded on this memorandum.

2. Each month, copies of all decisions
made by the Appeals Panel during the prior month must be delivered personally
or by mail to the advisory organization.

1. A party to the hearing who wishes to
appeal a decision of the Appeals Panel must do so pursuant to the provisions of
NRS 679B.310. Such a hearing must be
conducted by the Commissioner pursuant to the provisions of NRS 679B.310 to 679B.370, inclusive, and the regulations
adopted pursuant thereto.

2. The Commissioner shall not hold a
hearing on the request of an employer concerning the establishment of the
employer’s modification of premium based on experience, the classification of
risk assigned for the employer’s business, or application of the insurer’s
supplementary rate information to the employer unless the employer has:

(a) Filed a written grievance with the Appeals
Panel pursuant to NRS 616B.772; and

NRS 616B.850Insurer may establish plan to review small employers; objectives
of plan.An insurer may establish
a plan to review small employers who are insured by the insurer to encourage
such employers to maintain their loss experience at the lowest possible level.